The other major concern is the extent of remedies available – it is highly unlikely that an angry buyer will be granted an injunction to prevent the seller from selling to a third party, so the only remedy available under the agreement is reimbursement of wasted costs and, in some circumstances, additional payment of damages. 3. The buyer undertakes without delay to take all necessary measures to continue the proposed purchase of the aforementioned property, including the approval of the contract; The ownership of the property in question, which raises requests for the intermediation of a mortgage (if necessary) and a surveyor. Another peculiarity of the lockout agreement is that it does not oblige the seller to actually sell the property to the interested buyer, even after the expiry of the prohibition period. Similarly, the buyer is not obliged to acquire it from the seller after the expiry of the prohibition period. Therefore, the blocking agreement only allows a buyer to take some time to carry out inspections without fear of losing the property for a certain period of time. A lockout agreement is intended to provide a pre-contractual ”lockout period” for a buyer to conduct research, investigations and investigations prior to the sale. However, the agreement does not oblige the parties to continue the sale. A lockout agreement should be concluded for a shorter period, so that the ”lockout period” does not harm the seller. Its conditions must be clear and straight in order to avoid confusion. Due to the nature of exclusivity agreements and the need for precise drafting, it is not uncommon for the time required for negotiation and draft agreement to take a few weeks. In many cases, certain amounts are paid to the seller as non-refundable down payments to protect against the purchase of the property by another buyer. The document is not complex and normally has between three and four pages.
The agreement usually lasts about a month and the buyer normally has to pay non-refundable accounting to cover the seller`s costs if they withdraw from a transaction. This means that lockout agreements can be beneficial for both buyers and sellers. .