In competitive property markets—especially in fast-moving areas like London—serious buyers often seek a level of protection while progressing with due diligence and legal checks. One increasingly common tool in residential and commercial real estate is the exclusivity agreement.
Also known as a lock-out agreement, an exclusivity agreement grants a buyer exclusive rights to purchase a property within a specified period. This agreement can offer peace of mind, clarity, and transactional security for both parties—but it must be approached with care and legal guidance.
In this article, we explain what an exclusivity agreement is, how it works in UK property deals, and how Fraser Bond assists clients in negotiating and executing these agreements.
An exclusivity agreement is a legally binding contract between a seller and a prospective buyer, giving the buyer exclusive rights to purchase the property for a set period of time—usually 2 to 4 weeks.
During this time:
The seller agrees not to negotiate with or accept offers from other buyers
The buyer commits to progressing the purchase, typically by instructing solicitors, arranging surveys, and securing financing
It’s important to note that this agreement does not guarantee a completed sale, but it does prevent gazumping—where a seller accepts a higher offer after previously agreeing terms with another buyer.
An exclusivity agreement should clearly outline:
Duration of exclusivity period (e.g., 14–28 days)
Obligations of the buyer, such as instructing a solicitor or surveyor within a set timeframe
Obligations of the seller, including refraining from marketing or accepting alternative offers
Deposit terms (optional), if any payment is made to secure exclusivity
Consequences for breach, including potential recovery of costs
Exclusivity agreements are commonly used in:
