Housing: Sales

Department for Levelling Up, Housing and Communities written question – answered at on 24 October 2023.

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Photo of Charlotte Nichols Charlotte Nichols Labour, Warrington North

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will bring forward legislative proposals to require buyers and sellers to be compensated when the other party withdraws from an agreement to purchase a residential property.

Photo of Rachel Maclean Rachel Maclean The Minister of State, Home Department, Minister of State (Department for Levelling Up, Housing and Communities)

If a buyer or seller pulls out of a transaction once contracts have been exchanged, they are often already legally obliged to pay compensation to the other party. The amount of compensation will depend upon the individual contract, but it is intended to go towards costs accrued in the transaction, such as legal costs and search fees. Home buyers and sellers are also able to voluntarily enter into reservation agreements in advance of exchange, which can provide protection when property transactions fall through.

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