The basic terms already agreed in the provisional agreement should be incorporated into the formal agreement. What generally changes is the amount of detail and the range of matters covered. Any special conditions proposed for the formal agreement must be fully agreed by both parties before signing.
At a glance
| Area | What to expect | What the seller should check |
|---|---|---|
| Basic terms | The terms already agreed between the parties are incorporated into the formal agreement | Whether the actual wording accurately carries those terms forward |
| Coverage and detail | The formal agreement generally covers more matters and in greater detail | Which provisions have been added, expanded or qualified |
| Special conditions | Conditions may be proposed for the formal agreement | Whether both parties have fully agreed to all of them before signing |
What should stay the same?
The substance of the basic terms agreed in the provisional agreement should remain reflected in the formal agreement. The Estate Agents Authority describes the formal agreement as incorporating those basic terms.
That does not mean every sentence must appear in identical words. It does mean the seller should compare the documents and identify any wording that appears to alter, omit or qualify an agreed basic term rather than assuming that the term remains unchanged.
What should change?
The formal agreement should generally become more comprehensive. It may cover a wider range of matters and deal with them in greater detail than the provisional agreement.
This wider coverage is the main change to examine. It should not be assumed that additional detail has replaced the original agreement or changed its basic terms. Each added or expanded provision should be read for consistency with the terms already agreed.
How should special conditions be handled?
CLIC states that both parties must fully agree to all proposed special conditions before signing. The relevant check is therefore the wording actually proposed for the formal agreement, not merely a general understanding of what the document is expected to contain.
If any special condition remains unresolved, it should not be treated as agreed merely because the rest of the formal agreement is ready for signature.
What must the seller still confirm?
The seller still needs to confirm several document-specific points:
- The basic terms from the provisional agreement are accurately reflected in the formal agreement.
- Any added or expanded provisions are consistent with those terms.
- Every proposed special condition has been fully agreed by both parties before signing.
- Any unclear wording has been resolved before reliance is placed on it.
The cited guidance does not establish a universal clause list or a general timing rule for when either agreement becomes binding. Questions about legal effect, binding status or contractual deadlines must therefore be checked against the actual documents and, where necessary, clarified through independent legal advice.