Legal Advice for Property Exclusivity Agreements

A Property Exclusivity Agreement is a legal contract used in real estate transactions to give one party, usually the buyer, exclusive rights to negotiate for the purchase or lease of a property for a specified period.  The agreement ensures that the seller doesn’t market the property in question for an agreed-upon period of time, and agrees to only negotiate with the prospective buyer during this time. This gives the buyer time to progress with the transaction of the property without the risk of it getting sold to another party.

At Mounteney, we offer professional legal services in all areas of commercial property agreements. From advising you on what documents you may require during your property transaction, to drafting up the forms and guiding you through the process of completing them, our expertise covers it all.

Although the product does not include our involvement in the agreement of the terms, we can advise you on standard practices and suggest options that may be most suitable based on your requirements.

You may also wish to consider our Option Agreement product and Overage Arrangement product, or any of our other Commercial Agreements.

Once we receive your instructions, we can begin the drafting process. Drafting a tailored Exclusivity Agreement typically takes up to 7 days but if you require it sooner due to a deadline, we do offer an expedited service for an additional fee.

The completed agreement needs to be submitted to HM Land Registry for registration. This process can take up to 6 months, with applications processed in order of submission.

Our work for you includes:

• Taking your instructions
• Drafting the Exclusivity Agreement
• A Guidance service
• HM Land Registry application submission

We understand the importance of efficiency when it comes to Exclusivity Agreements, which is why we can work within your required timeframe if necessary to ensure all deadlines are met.

Your supplier is SRA-regulated Mounteney Solicitors, that charges VAT some customers may be able to reclaim

We charge £1100 + VAT = £1320

There is more about our fees on our website here

If you have any questions, require any further information, or would like to engage us (that will be on the T’s & C’s that are linked, “Our Terms”, in the footer, below) please don’t hesitate to Contact Us.

Commercial Property Exclusivity Agreements are common in commercial property deals where complex negotiations are required, and the buyer wants assurance that the property won’t be sold or leased to another party during the negotiation period.

Each exclusivity agreement is different and many variables can affect the terms of the document. You must negotiate the terms of the agreement until you are both happy. Depending on what the prospective buyer and seller have agreed upon, terms of the agreement can be adjusted so that both parties are fully protected.

Some of the key components of an exclusivity agreement are:

• Length of the exclusivity period – This is the agreed-upon period of time during which the property won’t be sold to another buyer.
• Financial agreement – This is the initial financial contribution that the  potential  buyer is agreeing to pay for the exclusivity period.
• Agreement obligations – This includes the general terms of the agreement such as, the buyer agreeing to purchase the property within the exclusivity period and preventing the seller from selling the property to another buyer.
• Termination terms – This includes the terms under which each interested party is able to withdraw from the agreement, such us breach of obligations.
• Due Diligence Process The agreement will outline the due diligence process and any documentation the seller must provide to allow the buyer to make an informed decision. This can include financial statements for the property (if it is income-generating), structural surveys, or planning permissions.
• Confidentiality Clause A confidentiality clause may be included to ensure that details of the transaction, especially sensitive information about the property or the negotiations, are not disclosed to third parties.
  

Commercial Property Exclusivity Agreements are valuable tools in high-stakes property transactions, providing clarity and security to both buyers and sellers. By laying out the expectations and obligations of both parties, the agreement helps ensure smooth negotiations and increases the likelihood of a successful transaction.

Whether you require an exclusivity agreement depends entirely on your individual situation. In most cases a simple transaction and exchange of contracts is the most time-efficient option. If the property in question is desirable, in high demand or high value, an exclusivity agreement may be a way for the buyer to gain an advantage by agreeing to pay an up-front deposit for the exclusivity period.

If you’re considering entering into a commercial property exclusivity agreement or need legal advice on negotiating such terms, our experienced team will guide you through the complexities of property negotiations, ensuring that your interests are fully protected.

Our expert Property Exclusivity Agreement solicitors are here to help you with all your property transaction needs if you wish to enter into an exclusivity agreement.

At Mounteney, we offer unparalleled legal advice, guidance and representation across all areas of commercial property law.

With offices in Stockport, Bramhall, Cheadle and Heald Green, we work with clients across Manchester, and beyond.

For professional legal advice and to learn how we can assist you with your exclusivity agreement needs, contact us today and let us know how we can help you.

Our experienced solicitors are ready to guide you with our unrivalled legal expertise.