A CONSULTATION on whether property transactions should include a legally binding pre-sale agreement will be undertaken by June 2027, if States Members agree.
Deputy Max Andrews has lodged a proposition pushing for legislation to prevent Islanders from being left “vulnerable” to gazumping and gazundering when buying or selling property.
Gazumping refers to instances in which a seller accepts a higher offer from another buyer despite already having agreed a sale, while gazundering is where a buyer places pressure on a seller by reducing their offer close to the completion of a sale – often just before contracts are exchanged.
The St Helier Deputy wanted to see financial penalties introduced for those that default on the agreement without a legitimate reason.
However, the Council of Ministers has lodged an amendment requesting that they be given time to consider the issue and to present a report by the summer of 2027.
In the amendment, ministers state: “Buying and selling a home is a significant milestone in many people’s lives, involving both a substantial financial and emotional commitment. It is, therefore, essential that the entire residential property transaction process is efficient, robust, and provides both vendors and purchasers with a high degree of certainty.
“The Council of Ministers shares Deputy Andrews’ concern to ensure that good practice
is adopted across all stages of the transaction process. Ministers have carefully considered the issues raised in the proposition and acknowledge that there may be areas where the process could be improved to better meet the needs of vendors and purchasers.
“This includes – but is not limited to – the potential use of pre-sale agreements to address practices such as gazumping and gazundering.”
The amendment states that Chief Minister Lyndon Farnham and Housing Minister Sam Mézec agreed with Deputy Andrews that it would be a “sensible first step” for the government – after the 2026 election – to undertake a “comprehensive review of the transaction process”.
“Fundamentally, whilst Deputy Andrew’s proposition is well-intended, it binds to a
conclusion that would only serve to penalise and compensate parties in a range of
situations, without addressing why those situations arise, or help prevent them from
happening in the first place,” ministers said in the amendment.
“Deputy Andrews’ proposition rightly highlights the need to consider whether Jersey
should modernise its residential property transaction process. The Council of Ministers
agrees with this sentiment and believes that a comprehensive review of the process
would be a constructive and beneficial approach.”
The review would include looking into the mortgage offer process; the appropriateness of transaction timescales and the transparency and timelines of information sharing.
The proposition, and the amendment, is due to be debated during next week’s States sitting.
