Letter of Undertaking From Seller'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 Seller's Solicitors Re. Completion Monies (Share Sale) is intended for use where the buyer (or the buyer’s solicitors) has transferred the completion monies to the seller’s solicitors ahead of completion.

What does Letter of Undertaking From Seller's Solicitors Re. Completion Monies (Share Sale) do?

It provides an undertaking by the seller’s solicitors that they hold the completion monies to the buyer’s order until completion occurs. On completion, the undertaking is automatically released and the monies are then held to the seller’s order.

The seller’s solicitors also undertake to pay interest to the buyer for the days they hold the completion monies to the buyer’s order.

What does Letter of Undertaking From Seller's Solicitors Re. Completion Monies (Share Sale) cover?

• A solicitor’s undertaking confirming the completion monies are held to the buyer’s order pending completion.
• Automatic release of the undertaking on completion and confirmation that the monies are then held to the seller’s order.
• An undertaking to pay interest to the buyer for the period the monies are held to the buyer’s order.

When should you use Letter of Undertaking From Seller's Solicitors Re. Completion Monies (Share Sale)?

• A share sale is completing outside normal banking hours and the completion monies are transferred to the seller’s solicitors in advance.
• The buyer requires a solicitor’s undertaking as to how the monies will be held pending completion, and how they will be treated on completion.

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