More than two-thirds of conveyancing solicitors are opposed to the introduction of mandatory binding sales contracts at the offer stage, according to new research commissioned by the Law Society.
The survey was carried out in response to the Government’s plans to reform the home-buying process and the two consultations published in October by the Ministry of Housing, Communities and Local Government, which examine the end-to-end conveyancing process and improving upfront material information for property listings.
The Government’s consultation proposals lack detail and therefore make it difficult to comment on how valid and workable they are.”
It found that 69% of the 210 conveyancers surveyed did not support the introduction of binding sale contracts under the current system. The Law Society says, “The Government’s consultation proposals lack detail and therefore make it difficult to comment on how valid and workable they are.”
According to Legal Futures, it means, as it stands, it cannot give its backing to the proposal, warning that introducing binding agreements before other reforms are implemented would increase the risk of disputes.
Consistent standards
It says they could only be successfully introduced once there was a “consistent high standard” of upfront material information available across the whole market. Only then could buyers and sellers enter agreements with a clear understanding of a property’s legal position.
The Law Society adds that, should the Government choose to proceed regardless, any binding contract model should be piloted and evaluated before a wider rollout.
It also made it clear that it does not think estate agents should be responsible for controlling the contracts, noting that while agent-led contracts operate in Denmark, it is under a system where agents are trained, registered and regulated.
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