Reservation Agreements: Conveyancing Process

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The Government has advised that a trial could take place for the conveyancing process to allow a buyer and seller to be locked into a transaction by way of a reservation agreement.

The Government has pledged to fix what it considers to be a ‘broken’ housing market and make the buying and selling process quicker, cheaper and less stressful.

Usually the home buying process takes around 20 weeks. It is felt that if a buyer and seller if locked into the transaction at an earlier stage this will be much less stressful for the parties involved.  A buyer and seller would be asked to put down some money to enter into the agreement.  If the purchase did not go ahead for whatever reason then the parties would get some money back.  There would need to be an acceptable reasons for pulling out of the transaction and this could include a bereavement, job loss, inability to get a mortgage or if the property is unable to be mortgaged.

A reservation agreement would mean that a seller would have to provide property information upfront. The Government will be exploring as to whether or not this process should be trialled and could be considered in the early part of 2020.

For all of your property needs, then please contact a member of our conveyancing team who will be more than happy to assist you to ensure that your conveyancing process is hassle-free.

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