Heads of terms are generally drafted during the early stages of a purchase, prior to solicitor involvement, to set out the proposed details of the deal agreed in principle. These are usually negotiated on your behalf by an agent. Typically, the Heads of Terms will include the following information:
details of the buyer and seller of the property;
solicitors details;
details of the property;
the agreed upon purchase price;
any conditions or restrictions applicable to the property; and
the proposed timeframe and completion date.
While not considered to be legally binding, Heads of Terms are useful documents as they can provide clarity for both parties, and reduce the risk of disputes or delays happening in the future.