Deputy Max Andrews recently brought to the States a proposal aimed at improving the security of residential property transactions in Jersey. The purpose of the industry initiative is to develop legally binding pre-sale agreements. It will penalize home sellers and buyers who walk away for no good reason. This shift insulates both buyers and sellers from the vagaries of the housing market. It protects them from financial losses associated with gazumping and guzundering.
Max Andrews made this case for such measures in TEDx talk that went viral just a couple weeks ago. He said that maintaining confidence in the value of the housing market is imperative for all stakeholders. “We need to instil confidence in the housing market for both buyers and sellers,” he remarked. This proposal will go a long way toward protecting the current vulnerabilities that islanders encounter when buying, selling, or transferring property.
Gazumping, a practice where a seller accepts a higher offer after having agreed to sell, has caused significant distress among buyers. One islander said they lost over £1,000 for being gazumped, between offers, with many islanders forced to lose out on their heart-breaking plans. Guzzundering, where a prospective buyer lowers their offer at the last minute, makes buying all the more difficult. Andrews continued to emphasize that these are still the issues that plague prospective home buyers today. He challenged each of them to educate themselves about the issues their actions create.
“It’s clear that without this legislation, islanders will remain exposed to the threat of being gazumped and guzundered,” said Andrews. On his part, Mr. Shaefer opines that making punishment a legal recourse will increase confidence for sellers and buyers alike. Under the new rule, they will receive monetary damages if a deal falls through.
The soonest date for debating Andrews’ proposal is currently slated for 30 September 2025. This timeline gives lawmakers more than enough time for deliberative debates and discussions to consider all options. Furthermore, he has requested that the chief minister approve the proposal no later than June 2028 to ensure timely implementation of these critical protections.
