New English Estate
3 min read

What is a Lock Out Agreement?

Looking to buy a house is a time-consuming process. It can be frustrating when a buyer invests time and money trying to find the perfect house. Then they make it through the process to find that the seller has opted to go with another buyer. This is where a lock-out agreement could be beneficial for both parties.

Lock-out agreements explained

A lock-out agreement, also known as an exclusivity agreement, is a pre-contract agreement between a seller and buyer. The seller agrees to work exclusively with the buyer in question to proceed with the purchase of their property.

This usually lasts for a set period. It ensures that both parties can move forward with confidence in the purchase of the property under a lock-out arrangement.

During the period of a lockout agreement:

  • A seller is prevented from negotiating with other potential buyers, therefore preventing a buyer from being gazumped.
  • A seller can feel more confident that the buyer is serious and committed about buying their home. They are less likely to withdraw their offer.
  • It also gives both sides a deadline to work towards, ensuring that the time is not wasted.

It’s important to remember that a lock-out agreement does not guarantee a sale. It only provides the exclusive rights to move forward with the purchase for a set period of time.

Can an estate agent arrange a lock-out agreement?

In short, no. If the seller agrees to a lock-out agreement, then it needs to be drawn up by a solicitor.

The estate agent may help keep the communication flowing. However, ultimately, it’s the legal teams who’ll put the lock-out agreement in place.

Find An Estate Agent

Advantages and disadvantages of a lock-out agreement

Advantages of a lock-out agreement

  • Exclusivity – the agreement affords both sides a period of exclusivity to gather facts on the property and get conveyancing underway.
  • Focus – it enables the buyer to proceed with certainty. The seller will not gazump them as they start to incur conveyancing fees during the lock-out agreement.
  • Reduced uncertainty – both above reduce the uncertainty that comes with buying and selling a property.

Disadvantages of a lock-out agreement

  • Complicated & costly – as this is a legal agreement, they can be complex. It requires a solicitor to draw them up, which will be an extra cost.
  • No guarantees – they do not guarantee a sale. There is the potential that either side could breach the terms of the lock-out agreement.
  • Gazundering – While the agreement can stop the seller from accepting other offers, it doesn’t stop the buyer from reducing their offer (gazundering) just before the exchange of contracts.

What’s included in a lock-out agreement?

It will identify the obligations of both buyer and seller under the lock-out arrangement. They typically include:

  • A defined timeframe within which the seller cannot entertain offers. Or they cannot have conversations regarding the sale of the property with other potential buyers.
  • Sellers’ obligations – withdraw the property from the market, be responsive to buyers’ questions, and draft a contract of sale.
  • Buyers’ obligations – start conveyancing promptly and pay for the lockout agreement

It will also include provisions for confidentiality. It specifies what would happen in the event the agreement was breached, and remedies or consequences as a result.

Does an agreement prevent gazumping

No. They don’t guarantee that either party will fulfil their intention to purchase/sell the property, even with a lock-out arrangement in place.

Once the lock-out period has ended, a seller could still accept a higher offer on the property. They could even choose to increase the sale price of the property.

What is gazumping?

Gazumping is when a seller accepts an offer from a buyer but then rescinds this. They then accept a higher offer from a different buyer.

This can be particularly frustrating because it’s often done when the conveyancing process is already underway. The original buyer will have been charged for any conveyancing that has already taken place.

Starting the conveyancing process?

If you’re looking to begin the conveyancing process? We can help you find a quick and easy conveyancing quote here.

Find a Solicitor

Last Updated: June 6th, 2025