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Chairmen's Committee - Approved Domestic Property Transactions Review Panel Minutes - 8 November 201

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Review Panel – Domestic Property Transactions

Date:  8th November 2016

 

Present

Deputy R.D. Johnson , Chairman Deputy R.J. Renouf

Deputy A.D. Lewis

Constable M.P.S. Le Troquer

Apologies

 

Absent

 

In attendance

Mr. J Quemard, Quemard Estates and Chairman of JEAA Mr J. Crespel, Crespel Estates

Ms C. Mauger, Choice Properties

Ms G. Hunt, Hunt Estates

Mr G. Hoare, Savills

Mrs J. Hales , Scrutiny Officer

 

Ref Back

Agenda matter

Action

Item 1 17.10.16

511/2/1

1. Domestic Property Transactions

The Panel welcomed members of the Jersey Estate Agents Association (JEAA)  to  a  meeting  to  discuss  its  review  on  domestic  property transactions. The  members  in  attendance  were  Mr.  J  Quemard, Quemard  Estates  and  Chairman  of  JEAA,  Mr  J.  Crespel,  Crespel Estates, Ms C. Mauger, Choice Properties, Ms G. Hunt, Hunt Estates and Mr G. Hoare, Savills.

The  Panel  was  informed  that  membership  of  the  JEAA  was  not  a compulsory requirement and, as such, about 50% of Estate Agents in the Island were members.

The JEAA were asked if a date of completion being set at 4 weeks at the beginning of the transaction was reasonable. The Panel was informed that in the last 12 to 24 months, banks were running at a slower pace and the decision making process on borrowing has been removed from the Island across the board. They went on to say that depending on the level of  borrowing,  there  could  be  an  immediate  3  week  delay  between paperwork being processed by the bank and them instructing a surveyor. The JEAA did acknowledge that some agents would put a date on the bottom of an instruction letter which could cause a reaction, however an experienced agent would know that in reality, a 4 week completion would be unlikely and it was more realistic to be averaging 6 weeks. The JEAA went on to say it was not down to the agents to select a date and any date written in the introduction letter was immaterial - their job was to make the introduction and agree a sale.

The JEAA did not see any evidence of gazumping or gazundering and explained that if Jersey was to go on to the 2 stage system similar to that in the UK of exchange and complete, any problems that currently existed in  the  Jersey  system  would  still  happen  but  would  be  prior  to  the exchange stage. The JEAA did admit that the Jersey system was not perfect but if comparing with other jurisdictions, functioned quite well both in terms of time taken for transactions and fees.

 

 

 

The JEAA was asked their opinion on Friday being the only option for property transacting. They did agree that another day in the week would be extremely useful as it could stagger the workload and would avoid the wait of another week should a late problem arise on the day of, or before completion.