| answer text |
<p>We recognise that the process for buying and selling homes in England and Wales
can be frustrating. In our response to the Call for Evidence for improving the home
buying and selling process, we set out actions we will take to make the process more
efficient and less costly.</p><p>One part of this work is encouraging the adoption
of voluntary reservation agreements. These would see buyers and sellers committing
to the sale once an offer has been accepted and may include both sides making a financial
commitment which would be surrendered to the other side if the party withdraws without
good reason. These agreements will provide more certainty for both sides as the sale
moves forward to completion; reducing the risk of parties withdrawing from transactions.
In the event a party does withdraw the other side may get some financial compensation
to cover their costs.</p><p>In order to be widely taken up, reservation agreements
need to be attractive to buyers and sellers, and promoted by estate agents and legal
representatives. Following behavioural insight research, work is now continuing to
develop the agreements to make them an effective tool in improving the efficiency
of home buying and selling and we hope to be able to evaluate their effectiveness
next year.</p><p> </p>
|
|
