Dump the gazump
»»Pay thousands if »»Buyers & sellers you pull out of sale 5% deposit plan
MINISTERS want to clamp down on sharp practice by imposing penalties if home sales collapse.
Buyers and sellers would face losing up to five per cent of the purchase price if either pull out after a sale is agreed.
Communities Secretary Sajid Javid wants to end gazumping, in which sellers pull out of a deal to bag a higher offer.
It would also stop a buyer guzundering by lowering an offer before contracts are signed.
Mr Javid’s plan goes further than the system FOOLHARDY daredevils are battered by huge waves as 70mph Storm Brian bludgeons Britain.
The group at Porthcawl in South Wales, had ignored Environment Agency warnings not to put themselves in danger.
An elderly couple escaped unhurt when a tree came crashing down on in Scotland where buyers pay a deposit of up to £1,000 after solicitors exchange letters committing both parties. Mr Javid said: “We’re determined to make the process cheaper, faster and less stressful.” After studying lock-in agreements in Denmark and America he will decide which system best suits Britain. their Ford Mondeo as they were driving in Bordon, Hants, during the storm yesterday afternoon. Police tweeted a photo of the car and said the pair had a “lucky escape”.
The strongest wind, 71mph, was measured at The Mumbles, west of Swansea. The Met Office warned that inland gusts could reach 55mph. He is giving estate agents, solicitors and mortgage lenders eight weeks to make submissions.
A survey showed 46 per cent of sellers worry about buyers pulling out.
Mr Javid’s plans were given a cautious welcome by the National Association of Estate Agents. And Edward More than 40 flood alerts were issued, most in the west of England.
Flood barriers were up in areas including Fowey, Cornwall, and travel was disrupted as half-term began.
In Wales, trains and ferries were cancelled and seafront roads closed.
South Western Railway had speed restrictions in Hampshire and Dorset. Goldsmith of the Conveyancing Association said: “Committing to buy at an early stage reduces stress. “It’s crazy that after agreeing to buy a house it can take up to four months to go through.”
nigel.nelson@ trinitymirror.com
HOW THEY DO IT IN AMERICA
Sales take four to six weeks. Offers are binding and a sale date is agreed. Deposits of 1-3 per cent of purchase price are made into an third-party account and there’s 14 days for surveys and searches.
HOW THEY DO IT IN DENMARK
Buyers must have finance in place. Accepted offers are binding but if buyers withdraw during a six-day cooling-off period they pay up to one per cent. This rises to five per cent of the price if they quit later.