There are few things more frustrating than a property purchase or sale falling apart at the last hurdle.
Continued use of paper or pdf documents and the demands of the anti-money laundering regime, has made the whole journey 60% longer than it was in 2007, according to the government’s own research.
The newly-unveiled home buying and selling reforms are a much-needed plan for improvement and will ensure that buyers and sellers spend less time in limbo. The reforms will build faster, smoother processes and parties will have more confidence about a transaction much earlier than ever before.
The CLC is pleased to see the approach taken by the government as it engaged with the responses to its consultation on the initial proposals, as well as the fact that the changes will be staggered and phased in, supported by regulations and legislation where needed to maintain high standards of consumer protection.
Improving buyer and seller confidence
At present, the home buying and selling process is outmoded, with built-in delays and a lack of transparency for buyers and sellers alike.
While the planned introduction of ‘sales packs’ and digital logbooks will mean sellers have to do more to prepare their property for the market, it will save a huge amount of time later on in the transaction by making information about property searches, condition reports and chains available early on, which will help both sides to proceed with the confidence that full information brings.
Paving the way for binding contracts
A major innovation will be around early, binding contracts. When parliamentary time allows, and after sales packs are embedded, legislation will be introduced to require the use of legally binding conditional contracts.
This will address the gaps in the law that, at present, mean parties can pull out of a transaction before contracts are exchanged, with no real recourse for the party that loses out and with all of the negative impacts that brings for them and others in the chain of linked transactions.
It will also create less incentive for the predatory practices of gazumping and gazundering. A seller accepting a higher offer at the last minute or a buyer lowering their offer on a property endangers the overall transaction. Plugging this gap in the system can only be a good thing by ensuring that there are consequences for such tactics.
Homebuying is going digital
The government is committed to digitalising home buying and selling and, in a world where people are more connected than ever, relying on paper documents and hard-copy signatures no longer makes sense.
Streamlining mandatory requirements such as anti-money laundering checks and avoiding duplication of work will save time for all those involved. A Smart Property Data Trust Framework, allowing information to be shared speedily and securely between all parties involved in a transaction, is also in development thanks to a Regulators’ Pioneer Fund grant awarded to the CLC.
As the reforms leap off the roadmap and into practice, streamlining processes and evolving best-use AI practices will be the shake-up that the industry needs.
All this takes time to get right, however, and as reforms won’t be implemented until 2029, a licensed conveyancer can advise you how best to proceed in the meantime.
Practices regulated by the CLC will have our badge prominently displayed on their website which, when clicked on, will take you to our site and confirm that the firm is genuinely regulated by us.
You can find a list of CLC-regulated conveyancers, as well as more guidance on buying and selling property, here.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers