When Communities Secretary Sajid Javid earlier this week asked the industry for evidence on how to stop gazumping, reduce time wasting and increase commitment, little did he realise there is already a proptech start-up that says it is the answer.
Gazeal, a platform that binds both vendor and buyer together when they are ready to agree a deal, prevents either side “walking away or moving the goalposts”, it says.
Gazeal says it believes the fall-through for UK property sales is even higher than the government research published by Sajid Javid on Sunday, which pointed to between a quarter and a third of all sales falling through.
The government research said nearly 40% of buyers who withdraw do so for personal reasons, while 13% do so because they have been gazumped, 10% becaues the vendor withdrew without explanation and 9% because the chain collapsed elsewhere.
But sellers have a different view. The government research revealed that they said of sales that do collapse, 35% did so after the buyer withdrew for personal reasons, while 28% fell apart because the buyer didn’t have sufficient funds lined up.
Duncan Samuel, Managing Director of Gazeal (pictured, below), says that gazumping is on the rise in the UK and that his platform’s service would put a stop to it.
“Gazeal Seal enables the parties to enter into a legally binding agreement to sell on the terms agreed that neither party can walk away from, subject only to Lenders Valuation and confirmation of Good Title, so giving both parties certainty with appropriate protections,” he says.
“We regularly have transactions reach a legally binding position within three days of an offer being made and accepted.”
Gazeal also offers an fast-track service for agents that enables them to list properties with a pre-prepared ‘contract pack’ including personal searches and an online property questionnaire which, the company claims, can save “weeks and even months,” says Duncan.