There is no legal or financial commitment in a property transaction before exchange, which means it is prone to collapsing often after significant time, money, and emotion has been invested. HousecureProtect is a contract to provide property buyers and sellers with reassurance and compensation in the event of unfair behaviour by the opposing party. What’s more we only charge a small fee, which is only due if it helps you achieve your goal of getting to exchange.
1 in 4 property transactions in the UK fall through, with most encountering delays or hurdles of some kind. The reasons for this are complex, but can be simplified into two broad categories: those within the control of buyers and sellers, such as malpractice, and those outside of their control, such as the collapse of the chain.
While it is difficult to completely remove the risks associated with property transactions, we can focus on the ones where the buyer and seller are directly involved. Do you have to rent a place and put your furniture into storage because your seller hasn’t sorted their move on time? Do you have to put your property back on the market after 2 months because your buyer has been dishonest about their finances and is pulling out at the last minute? This is where HousecureProtect can provide you with fair compensation.
HousecureProtect is a policy that both the buyer and seller can take out to ensure that the transaction goes smoothly. The policy is designed to protect both parties and make sure the process is fair and transparent. It is based on an already existing legal concept called a reservation agreement that we’ve made more accessible. Both parties will agree to a set of commitments and put down a deposit to secure the transaction. If any of the commitments are broken then all or part of the deposit can be allocated as fair compensation for the damages.
These commitments are the foundation blocks of HousecureProtect. They ensure that the decisions during the transaction process are made in good faith, and both parties must adhere to them (although they can be adjusted if necessary in the “Additional Conditions” section).
If any of these are broken without good reason, the other party will be entitled to compensation from your deposit.
Good faith
A staple of any well intentioned agreement. Both sides are committed to the transaction working and so should show this with sincere and honest actions towards the mutual goal of completing
No unreasonable price changes (Gazundering or Gazumping)
The Buyer will not reduce your offer without good cause before exchange. The Seller will take the property off the market and not accept alternative offers.
Communication and action will be swift and responsive
Both the Buyer and Seller will reply (even if just to update on progress) and begin action to complete outstanding activities within 3 days of receipt.
Time will be given to complete necessary tasks and due diligence
Both the Buyer and Seller will provide at least 2 months to complete all tasks and due diligence required for a successful sale.
Price changes must be proportional and negotiable
The Buyer will only change the offer price proportionally if new information is surfaced that has a material impact on costs. The seller must be open to negotiation but both sides can walk away without additional penalty if a new price cannot be agreed.
We know that every property transaction is different which is why we allow you to add any conditions that are specific to your situation.
This is the amount of protection you want to be covered by. We suggest £3,000 because this is the average amount lost on a property transaction failing. However, it’s completely up to you, and you can increase or decrease the protection as your wish.
Both parties will be expected to transfer this whole amount or a proportion in case compensation does become due. You can read more about this here
You can add any extra commitments that you feel are necessary to protect you and your transaction, as long as they are reasonable and the other party agrees to them. For example, the buyer may stipulate that the seller gets an expert opinion on the condition of the roof by a certain date. Bear in mind with requests like this that it is usually the buyer’s responsibility to carry out surveys.