Statutory Pre-Sale Agreements for standard residential property transactions (P.61/2025): amendment

STATES OF JERSEY

STATUTORY PRE-SALE AGREEMENTS FOR STANDARD RESIDENTIAL PROPERTY TRANSACTIONS (P.61/2025): AMENDMENT

Lodged au Greffe on 22nd September 2025 by the Council of Ministers

Earliest date for Debate: 30h September 2025

STATES GREFFE

2025  P.61 Amd.

STATUTORY PRE-SALE AGREEMENTS FOR STANDARD RESIDENTIAL PROPERTY TRANSACTIONS (P.61/2025): AMENDMENT ____________

1  PAGE 2, PARAGRAPH (a) –

For  the  words  "that  all"  substitute  "To  undertake  a  consultation  on  the effectiveness  of  the  residential  property  transaction  process,  and  consider whether";

For the word "must" substitute "should";

Before the word "exclude" insert the words "which may".

2  PAGE 2, PARAGRAPH (b) –

For the word "must" substitute "may";

After  the  words  "legitimate  reason,"  for  the  word  "to"  substitute  "and consideration given as to whether this should".

3  PAGE 2, PARAGRAPH (c) –

For the word "establish" substitute "consider". 4  PAGE 2, PARAGRAPH (d) –

For the words "bring forward for approval the necessary legislation to give effect to this decision" substitute "present a report to the Assembly on the outcome of the  consultation  on  the  effectiveness  of  the  property  transaction  process, including the role and scope of the use of pre-sale agreements and whether these should be considered as part of future legislation,".

For the word "2028" substitute "2027".

 COUNCIL OF MINISTERS

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

1. To undertake a consultation on the effectiveness of the residential property transaction process,  and  consider whether  residential property transactions should  include  a  legally  binding  pre-sale  agreement between seller and purchaser, which may exclude the following types of transactions –

1. intra-family or intra-company transactions;
2. Government or arm's-length body transfers;
3. auctions or forced sales;

4. transfer of shared transfer real estate;
5. transfer of shares owned in real estate; and
6. guest houses, hotels and other temporary accommodation transactions;

2. that pre-sale agreements may include a financial penalty to be paid by the seller or purchaser should they default on the agreement without a legitimate reason, and consideration as to whether this should be stipulated in law;
3. to request the Chief Minister to consider a list of exclusions to the imposition of a financial penalty, as set out in (b), including, but not limited to –

1. mortgage refusal following an adverse survey;
2. substantial damage to the property (such as fire or natural disaster); and
3. chain collapse where a party was reliant on a preceding sale; and

4. to request the Chief Minister to present a report to the Assembly on the outcome of the consultation on the effectiveness of the property transaction process, including the role and scope of the use of pre-sale agreements and whether these should be considered as part of future legislation, no later than June 2027.

REPORT

Overview

Buying and selling a home is a significant milestone in many people's lives, involving both a substantial financial and emotional commitment. It is, therefore, essential that the entire residential property transaction process is efficient, robust, and provides both vendors and purchasers with a high degree of certainty.

The Council of Ministers shares Deputy Andrews ' concern to ensure that good practice is  adopted  across  all  stages  of  the  transaction  process.  Ministers  have  carefully considered the issues raised in the proposition and acknowledge that there may be areas where the process could be improved to better meet the needs of vendors and purchasers. This includes – but is not limited to – the potential use of pre-sale agreements to address practices such as gazumping and gazundering.

Given the complexity of these issues, the Chief Minister and the Minister for Housing have agreed with Deputy Andrews that it would be a sensible first step for the next Government to undertake a comprehensive review of the transaction process, and to give consideration to wider modernisation of the process in order to reduce risks and help ensure the process is fairer and more certain for Islanders when buying and selling a home.

Fundamentally, whilst Deputy Andrew's proposition is well-intended, it binds to a conclusion that would only serve to penalise and compensate parties in a range of situations, without addressing why those situations arise, or help prevent them from happening in the first place.

Accordingly, the Council of Ministers has brought forward this amendment to the proposition. Its purpose would be to commit the next Government to undertaking an all- encompassing consultation on the transaction process, to be completed by June 2027. The consultation will cover all stages of the transaction process – not only pre-sale agreements – including , but not limited to, the timeliness of information sharing and the timescales set for transactions, the mortgage offer process and the conveyancing process.

The consultation would provide a clear and structured starting point for examining the full range of issues affecting the transaction process, including areas that might benefit from improvement. It would also ensure meaningful engagement with stakeholders – such as the public, estate agents, mortgage providers, the legal profession and Law Officers  –  helping  to  shape  improvements  that  enhance  trust,  efficiency  and transparency in the process.

Scope of the consultation

Deputy Andrews ' proposition rightly highlights the need to consider whether Jersey should modernise its residential property transaction process. The Council of Ministers agrees with this sentiment and believes that a comprehensive review of the process would be a constructive and beneficial approach.

Whilst the proposition has focused on the potential use of pre-sale agreements to protect vendors and purchasers from the risks associated with failed property transactions, both

Deputy Andrews and Ministers recognise that this is one part of a much broader set of issues. The proposed consultation serves, therefore, as a basis for an all-encompassing review the transaction process. Whilst the full scope of such consultation requires careful consideration, it might reasonably include, but not limited, the following issues:

the transparency and timeliness of information sharing;

the mortgage offer process;

the conveyancing process;

the appropriateness of transaction timescales, and

Jersey's unique Court-based completion process.

Importantly, a consultation would also offer a valuable opportunity to assess the current use of pre-sale agreements in Jersey, as one aspect of the transaction process, and their potential advantages and limitations. The findings of the consultation could then inform consideration  of  whether  statutory  provision  for  pre-sale  agreements  might  be appropriate in the future, and how this might sit with other areas of potential change.

This approach has the potential to reduce the risks associated with property transactions and strengthen protections for both vendors and purchasers, shaped by the insights of key stakeholders whose experience and expertise should play a central role in informing future proposals.

Conclusion

The Council of Ministers believes that promoting good practice throughout the entire residential property transaction process is of upmost importance, and that due diligence should be applied at each stage of the process to ensure successful completion.

If the policy objective is to improve Jersey's residential property transaction process, it is important that the issues involved are considered in a holistic, balanced and informed way. This amendment is intended to enable such an approach – by committing to a proper all-encompassing consultation that will allow for a comprehensive review of the process and ensure that future proposals are shaped by evidence and stakeholder input.

The Council of Ministers asks States Members to adopt this amendment. Financial and staffing implications

The proposed consultation can be undertaken from within the existing officer capacity of the Strategic Housing and Regeneration team, Cabinet Office, incorporated into the work planning of the next Council of Ministers.

Children's Rights Impact Assessment

A Children's Rights Impact Assessment (CRIA) has not been prepared in relation to this proposition as a CRIA is not required, in accordance with Schedule 2 to the Children (Convention Rights) (Jersey) Law 2022.