Revealed: the plan to end gazumping in house sales
Homebuyers and sellers could be required to sign reservation agreements to make it harder to walk away from a deal avoiding the heartache and expense felt by thousands around the country as one in three property transactions fall through in the current system.
Hailed as a revolutionary new scheme, as part of this new reservation agreement, a homebuyer or seller could be required to pay compensation if they pull out of a transaction without good reason. This scheme is set to be trialled by the government in early 2020.
A reservation agreement essentially “locks” people into the buying/selling process a lot earlier and makes it much harder to walk away or change your mind or indeed offer- helping to avoid the risk of gazumping or gazundering.
The agreement would involve one or both parties paying a fee at the outset. You would get some money back if the other side later pulls out.
Read the article in full, to learn:
- What a reservation agreement is and how it works
- Reasons that could be seen as acceptable for pulling out of a deal
- How much a reservation agreement may cost
- If you will get any money back if the deal falls through or indeed proceeds as agreed
- Hopes for how this will positively change the current conveyancing system
- Which companies already offer a reservation agreement