Penalties Suggested for Jersey Property Sale Withdrawals

Jersey Deputy Proposes Financial Penalties for Failed Property Sales

Homebuyers and sellers in Jersey could soon face financial penalties for pulling out of residential property transactions without a valid reason, under a new proposal aimed at reforming the island’s housing market.

Deputy Max Andrews has put forward a proposition calling for all residential property sales to be governed by a legally binding pre-sale agreement. This contract would impose a financial penalty on either party if they withdraw from a deal without just cause.

The proposal seeks to tackle the disruptive practices of gazumping—when a seller accepts a higher offer after agreeing to a sale—and gazundering, where buyers reduce their offer at the last minute. Andrews argues such behaviour undermines trust and stability in the local housing market.

One affected islander, who reportedly lost over £1,000 after being gazumped, has urged the government to take action and raise public awareness of the issue.

Exemptions and Valid Exits

Under the plan, certain types of sales would be excluded, including family and company transfers, auctions, government-led sales, and transactions involving hotels or guest houses.

The draft law also outlines legitimate reasons for pulling out of a deal without penalty, such as mortgage refusals, significant property damage, or collapse of a property chain.

Deputy Andrews emphasised the need for legal safeguards, saying:

"It is evident that without legislation, islanders will continue to be vulnerable to gazumping and gazundering. With legal recourse in place, buyers and sellers would have greater confidence in the process and some financial recompense should a transaction fail."

He added that the objective was to instil confidence in Jersey’s property market and encourage fairer, more transparent transactions.

Next Steps

The earliest the proposal could be debated in the States Assembly is 30 September 2025, with Deputy Andrews urging the chief minister to ensure approval no later than June 2028.