We’re often asked about Lockout Agreements, also known as Exclusivity Agreements.
Below you’ll find clear answers to the most common questions investors ask.

What is a Lockout Agreement?

A Lockout Agreement, also called an Exclusivity Agreement, is a short-term contract where the seller agrees not to negotiate with anyone else for a set period. It gives the buyer a clear window to carry out checks or arrange finance.

How long does a Lockout usually last?

Most last between 2 and 8 weeks, with 28 days being the most common. It’s long enough to get legals and surveys moving, but short enough to keep momentum.

Is it legally binding?

Yes, but only for exclusivity. The seller must not negotiate with others during the period, but it does not guarantee the sale itself.

What’s the difference between a Lockout and delayed completion?

A Lockout is about exclusivity before exchange, while delayed completion is a binding contract to buy, with completion set for a later date. One stops gazumping, the other legally secures the purchase.

Do I need to pay a deposit?

Not always. Some agreements involve a small deposit or covering the seller’s legal costs. Others are signed without any upfront payment.

What happens if the seller breaches it?

In theory, the buyer could claim damages. In practice, most sellers honour the agreement because they want the sale to progress smoothly.

When is a Lockout most useful for investors?

They work best for off-market properties, complex deals needing planning or finance, or when a seller wants reassurance before pulling the property off the market.

Why would a vendor agree to a Lockout?

A vendor agrees to a Lockout Agreement because it shows the buyer is serious and committed. It gives the seller reassurance that the buyer won’t waste their time, and in some cases, the buyer may cover part of the seller’s legal costs. For vendors, it’s a way to pause marketing and focus on one motivated buyer, rather than juggling multiple uncertain offers.

Do I need a specialist solicitor?

Any conveyancer can usually handle a lockout. For more complex structures, a solicitor with investment property experience is recommended.

What are the risks for investors?

The main risk is spending money on legals or surveys and not completing if the deal falls through. That’s why the timeframe is usually short.

How does a Lockout protect me compared to a normal purchase?

It gives exclusivity. You can move forward with due diligence knowing you won’t be gazumped by another buyer during the agreed period.

What happens if the Lockout Agreement is breached?

If one side breaks the terms, the other may recover agreed costs such as survey or legal fees. Usually, the buyer does not gain rights over the property itself.

Are Lockout Agreements common in property deals?

They are not used in every transaction but can be valuable in competitive situations. Investors often use them when they need a clear window to arrange finance.

Who pays for the costs of a Lockout Agreement?

It is common for the buyer to cover the legal costs of preparing the agreement, although in some cases, costs may be shared. The amount is usually modest compared with the security it can provide.

Does a lockout agreement guarantee the sale will complete

No, a lockout agreement only prevents the seller from negotiating with another buyer during the agreed period. The purchase itself still depends on finance, due dilligence and the contracts being exchanged 

Can both residential and commercial properties use lockout agreements?

Yes, lockouts can apply to either type of property. The principle of granting temporary exclusivity is the same.

Lockout Agreements are just one of many tools we use to protect our investors and secure off-market opportunities.
Contact us to discuss how a Lockout could work for your next investment.

Learn more about how Lockout Agreements fit into our wider investment strategies on our main Lockout page

If you would like to discuss a potential property opportunity, or explore which approach may best suit your situation, you are welcome to contact us using the details below.

All initial discussions are handled confidentially and without obligation.