There are few things more frustrating than a property purchase or sale collapsing at the last hurdle.
The constant use of paper or PDF documents and anti-money laundering system requirements has made the entire journey 60% longer than in 2007, according to government research.
The newly unveiled home buying and selling reforms are a much-needed improvement plan that will ensure buyers and sellers spend less time in limbo. The reforms will build faster and smoother processes, and parties will have greater confidence about the deal much earlier than ever before.
The CLC is pleased to see the approach taken by the Government as it deals with responses to its consultation on the initial proposals, as well as the fact that the changes will be staggered and incremental, supported by regulation and legislation where needed to maintain high standards of consumer protection.
Improve buyer and seller confidence
Nowadays, the home buying and selling process is outdated, with delays and a lack of transparency for buyers and sellers alike.
While the planned introduction of ‘sales packs’ and digital records will mean sellers have to put in more effort to prepare their property for the market, it will save a significant amount of time later in the transaction by making information about property searches, condition reports and series available early, which will help both sides move forward with the confidence that full information brings.
Paving the way for binding contracts
The main innovation will be early and binding contracts. When parliamentary time permits, and after sales packages are consolidated, legislation will be introduced requiring the use of legally binding conditional contracts.
This would address loopholes in the law that currently mean that parties can withdraw from a deal before contracts are exchanged, with no real right for the losing party and with all the negative impacts that brings on themselves and others in the chain of linked transactions.
It will also create less incentive for predatory practices of staring and staring. A seller accepting a higher offer at the last minute or a buyer lowering their offer on the property puts the overall deal in jeopardy. Closing this gap in the system can only be a good thing by ensuring that there are consequences for such tactics.
Home buying is going digital
The government is committed to digitizing the buying and selling of homes, and in a world where people are more connected than ever, relying on paper documents and paper signatures no longer makes sense.
Simplifying mandatory requirements such as anti-money laundering checks and avoiding duplication of work will save time for everyone involved. The Smart Property Data Trust framework, which allows information to be shared quickly and securely between all parties involved in the deal, is also being developed, thanks to a Regulators Lead Fund grant awarded to CLC.
As reforms leap from the roadmap into practice, streamlining processes and developing AI best practices will be the change the industry needs.
However, all of this takes time to get right, and as the repairs won’t be carried out until 2029, a licensed conveyancer can advise you on how best to proceed in the meantime.
CLC Regulated Practices Our badge will be prominently displayed on their website which, when clicked, will take you to our website and confirm that the company is truly regulated by us.
You can find a list of conveyancing companies regulated by the CLC, as well as further guidance on buying and selling property,here.
Stephen Ward is Director of Strategy and External Relations at Board of Licensed Carriers
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