Exchange of Contracts and Completion of a Rented Commercial Property

Tenants Commercial Property Guide The final step is to exchange contracts and complete the contract with the landlord. There are certain things that you should check beforehand. Our guide will help you tick all the boxes before you exchange contracts.

Exchange of Contracts and Completion

You are ready to exchange contracts with the landlord of the commercial property when:

  • The surveyor or solicitor has made all the necessary checks and satisfactory inspections on the building
  • Both tenant and landlord are satisfied with the contract and searches
  • Any conditional planning permission has been granted
  • The necessary money has been raised to exchange and complete the transaction

Until contracts have been exchanged, the vendor can choose to let to another interested party unless a lockout agreement has been entered into.

This law is different in Scotland – a lockout agreement is not required. There is no legal compulsory contract between two parties, meaning until the contract has been concluded, either party can walk away from the deal without any penalty.

Completion is usually one month after the initial Exchange of Contracts. This date can be varied prior to Exchange of Contracts and again will be clearly stated in the HOTS. Completion is when the balance is paid and the contract is completed. The keys are now yours and you can start to realise or implement your business ambitions.

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