We’re exclusive: Back to basics on lock-out agreements

22 September 2026

With an increasingly competitive property market, buyers find themselves exposed to investing time and money scoping out a property just for the seller to continue with another party.

A lock-out agreement can remedy this infuriating situation, as it can reassure and protect both parties during the due diligence process.

What does a lock-out agreement involve?

The purpose of a lock-out agreement is to stop the seller from negotiating with other buyers during the ‘lock-out period.’

Sometimes referred to as an ‘exclusivity agreement’, the buyer is granted a time frame where they have exclusive rights to buy a property.

This gives them time to conduct necessary due diligence, including surveys and investigations, before fully committing to the purchase.

The seller obligations outlined in these agreements can include:

• To stop negotiating with other prospective buyers.
• To stop marketing the property.
• To answer the buyer’s questions and to draft potential contracts.

The buyers can also be bound to certain terms:

• To proceed with surveys and searches as quickly as possible.
• To compensate the buyer for arranging the lock-out agreement.
• To purchase during the lock-out period, if they want to do so.

Are lock-out agreements worth it?

The advantages of lock-out agreements are that they can give buyers breathing space when investing time and money into surveys, searches and mortgage finance, without the worry that the property will be sold elsewhere.

For sellers, these agreements signal that a buyer is committed and can help demonstrate good faith.

However, a caveat worth considering is that these agreements don’t compel either party to complete a transaction.

With no guaranteed outcome, weeks can be spent negotiating terms of lock-out agreements that could have otherwise been spent on furthering the conveyancing process.

Why is professional advice so important?

As the value of a lock-out agreement often comes from how well it is drafted, speaking to our solicitors can help ensure it is enforceable.

Agreements need to meet certain requirements to be valid and courts are likely to disregard those which are vague or open to interpretation.

With a well-drafted agreement in place, our experts can help you recover wasted costs, including legal fees and survey fees, if one party breaches their obligations.

Speak to a member of our Conveyancing Team for advice on whether a lock-out agreement is right for your move.