Letter Of Undertaking From Buyer’s Solicitors Re Completion Monies (Share Sale)

Share sale agreements often state that the purchase price will be paid at completion. In practice, this may not always be possible, for example where completion takes place outside normal banking hours.

This Letter Of Undertaking From Buyer’s Solicitors Re Completion Monies (Share Sale) is intended for use in those circumstances, where the buyer has transferred the completion monies to its solicitors in readiness for completion.

What does Letter Of Undertaking From Buyer’s Solicitors Re Completion Monies (Share Sale) do?

It provides an undertaking by the buyer’s solicitors that they hold the completion monies to the seller’s solicitors’ order and will instruct their bankers to send the monies to a designated account on a specified date, together with interest.

What does Letter Of Undertaking From Buyer’s Solicitors Re Completion Monies (Share Sale) cover?

• A solicitor’s undertaking confirming the completion monies are held to the seller’s solicitors’ order.
• An undertaking to instruct the buyer’s solicitors’ bankers to transfer the monies to a designated account on a specified date.
• Provision for interest to be paid together with the completion monies.

When should you use Letter Of Undertaking From Buyer’s Solicitors Re Completion Monies (Share Sale)?

• A share sale is completing outside normal banking hours and payment cannot be made at the moment of completion.
• The buyer has already transferred the completion monies to its solicitors, and the seller’s solicitors require a formal undertaking as to holding and onward transfer.

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