Have you ever heard someone say about their buyer:
Choosing a Sandersons Secure Sale prevents either party from just walking away or attempting to renegotiate the price and timescales after an offer is accepted without penalty.
Once the offer has been agreed, both buyer and vendor sign an agreement, the property is withdrawn from the market and both are bound by the terms within. If either party withdraws or breaks the agreement without a mutual agreement to change the terms, then the innocent party is entitled to a minimum £2,000 compensation payment.
This gives each party the reassurance that the other is committed to the process to ensure a successful sale. There is a cost involved, but it is comparatively very little when you factor in wasted time, legal costs, deposit for removals and any other plans you then have to change.
Gazeal is an established UK company that brings together innovative property technology solutions with conveyancers and estate agents to simplify the house buying process in England and Wales to eliminate gazumping and agreed house deals falling through.
The government has stated in their How to sell guide. that reservation agreements should be used for residential house sales and purchases. Gazeal has already developed a reservation agreement which is being used in the marketplace. The agreement – used on residential property in England and Wales with a registered title – binds the seller and buyer to exchange once the buyer has received a mortgage offer (if required) and their conveyancer has confirmed that the title is good and marketable.
• If the property is down-valued due to a survey and it cannot be re negotiated.
• If the chain breaks above the seller or below the buyer.
• If it is found to have a bad title by the solicitor
• If the buyer is unable to secure the finance
• Agreed timelines not been met & neither party wishes to continue
• Any reason or special condition that has been agreed by both parties.
• In events where the sale cannot continue through no fault of either party, any fee paid will be refunded in full.
If either party wishes for an amount not shown or higher than £50,000 contact your Estate Agent or Gazeal for confirmation of prices.
The Compensation amount is NOT paid unless either party breaks the agreement.
| Compensation Guarantee | Reservation Fee inc VAT |
|
£2,000 |
£600 |
|
£5,000 |
£1,080 |
|
£10,000 |
£1,800 |
|
£20,000 |
£3,000 |
|
£30,000 |
£4,200 |
|
£40,000 |
£4,800 |
|
£50,000 |
£7,200 |
Neither party is required to pay the amount of the Compensation upfront. Instead, Gazeal guarantees to each party that if the Compensation is due, and the defaulting party does not pay, Gazeal will pay the innocent party under the guarantee, and will pursue the defaulting party for repayment of the Compensation.
A Reservation Agreement is an agreement between the Buyer and Seller. The Buyer reserves the right to purchase the property and the Seller agrees not to sell to another party. If either breaks the agreement they agree to pay the other party a compensation amount. This protects the Buyer from being gazumped and the Seller from gazundering. More importantly the sale proceeds with both Seller and Buyer committed to each other subject to contract.
The term of the agreement is set by both parties prior to the start of the agreement and can be any time up to six months. It helps keep both parties working towards an agreed timeline. Seller and Buyer should exchange contracts before the expiry date, if either party is not ready to exchange they must provide a reason why. The agreement term can be extended by mutual consent if one party is delayed and there is no charge for any extensions.
If the property is down-valued due to a survey or urgent repairs identified and they cannot be renegotiated. If the chain breaks above the seller or below the buyer. If the property has a bad title confirmed by the conveyancer. If the buyer is unable to secure the finance. Agreed timelines not met and neither party wishes to continue (subject to reasonable proof). Special Conditions can be added to the agreement to cover specific areas of concern for individual cases, they will have to be agreed by both parties. In events where the sale cannot continue through no fault of either party, any fee paid will be refunded in full.
Neither party have to pay the compensation amount upfront, instead Gazeal provide a guarantee to pay the compensation in the event that the agreement is broken. The fee for this guarantee starts from as little as £600 including vat. This guarantees a compensation payment to the innocent party of £2,000. Gazeal can guarantee amounts up to £100,000 if required.
This is decided before the Reservation Agreement is produced. The Buyer pays the fee to secure the property off the market. In some cases the Seller can choose to offer to refund it, or split it 50/50.
No, this is a fee for arranging a pre- exchange agreement and the certainty of compensation if the sale falls through unreasonably. This does not replace the need for a formal deposit that is required from the Buyer at the time of exchange of contracts. In cases where the Seller agrees to offer to refund this fee on completion of the sale the Buyer will be repaid any fee for this agreement.
