Politicians agree to review property transactions

Deputy Sam Mézec's amendment to Deputy Max Andrew's proposition means a review of residential property transactions in Jersey will now take place.

Politicians have agreed to undertake a consultation and review of residential property transactions in Jersey.

The States voted to approve the plans after a proposition from Deputy Max Andrews to bring in pre-sale agreements stopping buyers and sellers pulling out at the last minute was amended by the Council of Ministers.

Deputy Andrews argued pre-sale agreements would prevent gazumping, where a seller accepted a higher offer after agreeing to sell, and gazundering, where a buyer lowers their offer at the last minute.

While the government agreed that Deputy Andrews had identified an important issue, it amended his plans to conduct a wider review of residential property transactions before introducing new legislation.

The consultation will be completed by June 2027 and will gauge opinion from the public, estate agents, mortgage providers and legal professionals.

The Housing Minister welcomed the States Assembly's decision to do a wider review of the residential property market.

Deputy Sam Mezec said: "Deputy Andrews is right to highlight that our property transaction process is quite archaic and we do know that there are people who experience difficulties within that, transactions falling at the last minute and people ending up with their hearts broken when they have their hearts set on a new home."

"But I think there is probably more to it than introducing pre-sale agreements so I was grateful that Deputy Max Andrews agreed with us that instead we would do a wider consultation on the whole thing to find an all-encapsulating solution."

Deputy Max Andrews said a consultation and review of property transactions was a good compromise.

Deputy Andrews said: "So many people have shared with me their experiences of gazumping and gazundering and it's important we look to modernise our property transaction process, we need to provide more certainty for people and do more to protect people."

But Deputy Andrews felt that although the Assembly did not support his plans to introduce pre-sale agreements, the decision to undertake a consultation which would ask stakeholders about bringing in pre-sale agreements was a good compromise.

He said: "There is sufficient evidence to suggest the consultation will allow us to actually gain all the information we need and by June 2027 then there will be an opportunity to say this is what the law will look like."