Government may look to ban GazumpingMake Text Bigger
Around 200,000 or 18% of house purchase transactions fall through every year with the Telegraph reporting that the Department for Business Innovation and Skills have been in talks with the National Association of Estate Agents (NAEA).
The discussions were to consider the idea of introducing the Scottish system which is also used in other countries in Europe where property sales are legally binding at the point an offer is accepted by the vendor.
Currently in England and Wales a purchaser can have the sale fall through or be “Gazumped” at any point up until exchange of contracts.
However this may be unpopular with sellers as they would probably have to cover the costs of survey and legal fees of over £1,000 which are currently paid for by buyers.
In the Budget last March the Government said, “We will publish a call for evidence on how to make the process better value for money and more consumer friendly.”
National Association of Estate Agents MD, Mark Hayward, said “the English system for buying and selling property dates back to the 1920s and has not been updated for nearly 100 years. It is an archaic system which doesn’t allow for modern technology. It needs updating to allow for as much work to be done before the point of offer as possible.”
As yet we have no further confirmed details or timescales.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.