News

Property transactions overhaul

​The way homes are bought and sold in Jersey has been reviewed by the Residential Property Transactions Review Panel, which has published its report ‘Residential Property Transactions’today (S.R.2/2018).

The review was prompted by public concerns about the current process of buying residential property in Jersey, including the ability buyers and sellers to renegotiate or pull out of a transaction at the last minute.

Unlike many other jurisdictions, until contracts are passed before the Royal Court there is no certainty that a purchase will proceed. This uncertainty can result in avoidable last-minute problems.

The Chairman of the Review Panel, Deputy David Johnson, said: "The present procedure governing property transactions was established in the 19th century and the overall objective of this review has been to assess whether the present system adequately serves the needs of the public in the present age. Whilst the Panel concludes that, with the co-operation of various stakeholders, changes can be made to improve the current system, this does not remove the clearly identified need to undertake a comprehensive review of the present law."

The Panel is asking the Chief Minister run a consultation into whether pre-sale agreements should form part of the standard transaction process. This should include a financial penalty for buyers and sellers who fail to comply with the agreement. The findings of that work should be presented to the States before the end of May 2019.