lock-out agreements

deprivedofsleep

hi all,

does anyone have any experience of going through the process of a lock-out agreement between buyer and vendor -how does it work and how successful is it?

any pros/cons?

Thanks

ognum

Do you mean a legal exclusivity agreement?

deprivedofsleep

is that what it's called? I don't know the legal terminology of it and have only heard it refer to as a-lock-out agreement'.

are you familiar with it?

steve1980

Why would you want one?

ognum

If that is what it is called we used one at the request of the vendor when we bought a property a few years ago.

it was a legally binding agreement that excluded us and them from gazumping or gazundering. We mutually agreed a sum, can't remember the exact figure but subject to the house being surveyed and valued at the price we offered and it having an no more than an agree amount of work needed we would continue to exchange.

I think it was not watertight and we or they could have found a way out if we wanted but we were very happy and still are with our purchase and they need to feel safe in the sale so they could move to a new build that had a lot of interest in it.

We are still friendly with the vendors, chat at parties, pass the time of day in the street if we meet and I still forward post to them!

It worked for us, cost £500 I think!

ognum

should also say they were legally unable to show the house to anyone else within the exclusivity period!

deprivedofsleep

thanks for the reply.

we are looking into getting this type of agreement as we have had an offer accepted on a property but the estate agent won't take it off the market they say it's standard. they have also stated that the property will remain on the market on the acceptance of offer letter. from what we can fathom the vendor is happy with this price and we have exchanged solicitor details.

how do we go about communicating the idea of this agreement to the vendor directly without the interference of the estate agent -or is that illegal? should we always contact the vendor through the agents or can we contact the vendor directly?

rosyw

I have sold this way, but it cost my buyers a lot more than £500!
Thea greement was that in return for a non refundable payment of a few grand I would not actively market the property for an agreed length of time, and the end of which the sale must completed, (the payment was not part of the purchase price). There was to be no negotiation on the agreed price, and it wasn't subject to survey. The sale completed 2 days prior to the end of the agreement.

ognum

deprivedofsleep wrote: »

thanks for the reply.

we are looking into getting this type of agreement as we have had an offer accepted on a property but the estate agent won't take it off the market they say it's standard. they have also stated that the property will remain on the market on the acceptance of offer letter. from what we can fathom the vendor is happy with this price and we have exchanged solicitor details.

how do we go about communicating the idea of this agreement to the vendor directly without the interference of the estate agent -or is that illegal? should we always contact the vendor through the agents or can we contact the vendor directly?

Talk it through with your solicitor before introducing it to EA and vendor, you don't want to suggest something that is too costly or not possible and then present it.

EA should be happy it ties the sale in place!

deprivedofsleep

thanks ognum, i think i will.