Deputy Max Andrews, an Independent Member of Jersey’s States Assembly, is calling for all residential property transactions to include a legally binding pre-sale agreement to help protect Islanders from gazumping and gazundering.
The Deputy for St Helier North has also asked the States Assembly to consider introducing a financial penalty “to be paid by the seller or purchaser should they default on the agreement without a legitimate reason, to be stipulated in law”.
His proposition comes with a report where he argues that “no action” has been taken to address gazumping and gazundering in Jersey, despite the matter being subject to a Scrutiny Panel review in 2018.
Deputy Andrews said: “As politicians, we must instill confidence in the housing market for both buyers and sellers. It is evident that without legislation, Islanders will continue to be vulnerable to gazumping and gazundering.
“The 2018 panel found that lawyers often advise against pre-sale agreements – advice which may leave clients exposed to the very risks they are trying to avoid. This reinforces the case for legislation to modernise the property transaction process to better protect Islanders. With legal recourse in place, buyers and sellers would have greater confidence in the process and some financial recompense should a transaction fail.”
He proposes a signed pre-sale agreement that would establish a fixed completion period with an exclusivity clause preventing the seller from accepting other offers. There would, however, be exceptions for certain transaction types such as auctions, forced sales or transfers within a family or company.
Deputy Andrews went on to say that under his proposed legislation, estate agents and sellers would also be forbidden to advertise the property after an agreement is signed and that “if either party withdraws without a legitimate reason, then the defaulting party would be required to pay a financial penalty.”
He stated: “Sellers and agents must not mislead buyers. If they do, the buyer can withdraw without penalty.”
His proposition asks that the Chief Minister bring forward legislation for approval by June 2028, and to establish a list of these exceptions.
A debated at the States sitting is timetabled to begin on Tuesday 30 September.
In March 2025, Deputy Andrews proposed that stamp duty and Enveloped Property Transaction Tax for properties that are not main residences be raised from 3% to 5% from next year. He said this would provide “more opportunities for first-time buyers because it discourages investment in second homes” and could generate an additional £1.2 million in stamp duty revenue.
