Leaked documents from recent high-level meetings between multiple government agencies imply that serious consideration is being given to the introduction of statutory penalty charges on vendors and purchasers who withdraw from previously-agreed property sales transactions.
A ‘Pull-Out Payment’ of 10% of an agreed sale price would, it is estimated, reduce fall-throughs to just 1.0425% from the present level of 28.8%.
Ministers have expressed concerns that estate agencies are being exploited and disadvantaged by vendors who milk the ‘no-sale, no-fee’ system and walk away from transactions, leaving agents carrying the costs of marketing and losing those agents thousands of pounds in commission. Purchasers too can change their minds and exit an agreed sale at little or no cost or consequence.
A spokesperson told EYE: “The unjust use and abuse of estate agents has been going on for decades and the proposition of putting in a pull-out payment has been met with an enthusiastic response from Ministers.
“The health of the estate agency industry is a matter of great cross-party concern and it does appear that government is prepared to act in order to safeguard the interests of those who work so diligently to keep the nation on the move.
“We expect the draft legislation to be introduced to Parliament in the autumn and to be fast-tracked into law by Christmas.”
Agents have welcomed the initiative. The National Association of Property Purveyors said: “It’s great news and long overdue. Do we get a cut?”
New report seeks to reduce property sales fall-through rates
Comments (10)
Would be a good April Fool if it wasn’t for the fact that these are lock-in/lock-out agreements which have been in place for yonks and are occasionally used when both solicitors agree to use them and it just needs the Government to make them mandatory which would take two shakes of a lamb’s tail!
Nearly had me there!! Oh well there is always Gazeal ( not a joke )
“Ministers have expressed concerns that estate agencies are being exploited” :Ha ha. Even the most gullible surely twigged on that statement !
That was a step too far in stretching our credibility, EYE!!
Good April Fool, though – well done and thanks for the laugh!
EYE? When you be confirming this is an APRIL FOOL?
Good see the Eye has a sense of humour
Gets excited, then checks the date….oh well, we can but dream.
Yeah yeah… and pigs will fly! Nice try!! 😉
About time too, it’s been in place for ages amongst many European countries and is termed ‘a non-refundable deposit ‘ !! Genius !!
Now that would be a good idea even if it is 1st April.