Deputy Max Andrews, an Impartial Member of Jersey’s States Meeting, is asking for all residential property transactions to incorporate a legally binding pre-sale settlement to assist defend Islanders from gazumping and gazundering.
The Deputy for St Helier North has additionally requested the States Meeting to think about introducing a monetary penalty “to be paid by the vendor or purchaser ought to they default on the settlement with no authentic purpose, to be stipulated in legislation”.
His proposition comes with a report the place he argues that “no motion” has been taken to deal with gazumping and gazundering in Jersey, regardless of the matter being topic to a Scrutiny Panel evaluate in 2018.
Deputy Andrews stated: “As politicians, we should instill confidence within the housing marketplace for each patrons and sellers. It’s evident that with out laws, Islanders will proceed to be weak to gazumping and gazundering.
“The 2018 panel discovered that attorneys typically advise towards pre-sale agreements – recommendation which can go away shoppers uncovered to the very dangers they’re attempting to keep away from. This reinforces the case for laws to modernise the property transaction course of to raised defend Islanders. With authorized recourse in place, patrons and sellers would have larger confidence within the course of and a few monetary recompense ought to a transaction fail.”
He proposes a signed pre-sale settlement that might set up a hard and fast completion interval with an exclusivity clause stopping the vendor from accepting different provides. There would, nonetheless, be exceptions for sure transaction sorts equivalent to auctions, compelled gross sales or transfers inside a household or firm.
Deputy Andrews went on to say that below his proposed laws, property brokers and sellers would even be forbidden to promote the property after an settlement is signed and that “if both social gathering withdraws with no authentic purpose, then the defaulting social gathering could be required to pay a monetary penalty.”
He said: “Sellers and brokers should not mislead patrons. In the event that they do, the client can withdraw with out penalty.”
His proposition asks that the Chief Minister carry ahead laws for approval by June 2028, and to ascertain an inventory of those exceptions.
A debated on the States sitting is timetabled to start on Tuesday 30 September.
In March 2025, Deputy Andrews proposed that stamp responsibility and Enveloped Property Transaction Tax for properties that aren’t principal residences be raised from 3% to five% from subsequent 12 months. He stated this would offer “extra alternatives for first-time patrons as a result of it discourages funding in second properties” and will generate a further £1.2 million in stamp responsibility income.
