Make accepted property offers binding and require compensation if withdrawn

Background

Require accepted offers on residential property in England and Wales to become legally binding subject to conditions, such as satisfactory surveys and mortgage approval, and require a party who withdraws without good reason to compensate the other for costs, including legal and survey fees.

Additional details

Property transactions in England and Wales often fall through after offers are accepted, sometimes late in the process. This can leave buyers and sellers losing thousands in fees with no consequence for the party who withdraws. In Scotland, accepted offers are binding subject to conditions, reducing fall-throughs. We believe a similar system, with compensation for unreasonable withdrawal, would make transactions more secure and fairer.

Where it’s popular

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