Heads of terms are a short document, usually two or three pages, setting out the main points of the deal once an offer is accepted: the price, what is included, the timetable and any conditions. They are not normally legally binding, but they stop misunderstandings before the legal costs start.
Once you accept an offer, both sides instruct solicitors. Heads of terms give those solicitors the same starting point, so they are drafting the deal you agreed rather than discovering disagreements weeks later.
What they usually cover
- The price, how it is paid and whether any part is deferred.
- What is included: goodwill, equipment, stock at valuation, the trading name, phone number, website and booking system.
- Conditions, such as the landlord’s consent, a licence transfer or the buyer’s funding.
- Your restrictive covenant and handover period.
- A target completion date and any exclusivity period.
We prepare heads of terms on every sale. They are the single best way to keep a salon sale on track.