A pressure group has proposed a £1,000 ($1,328) penalty for any party that pulls out of a home-buying deal, saying it would help reduce transaction collapses that cost consumers $500m a year. The HomeOwners Alliance, which aims to represent the interests of domestic property owners and aspiring buyers, issued the proposal in response to a government review of the homebuying process. – If either side breaches their commitment to being a “genuine” seller or buyer – such as by putting the property back on the market, accepting a higher offer from another buyer, or the buyer putting in a lower offer after the sale price agreed, then they will be deemed to have pulled out of the transaction, and are liable to pay the other side the £1,000. Under current rules, if you buy your home from an agent or mortgage broker, then sell it, you can only recover up to £2,500 ($3,000) of the original deposit – but this is capped at
A pressure group has proposed a £1,000 ($1,328) penalty for any party that pulls out of a home-buying deal, saying it would help reduce transaction collapses that cost consumers $500m a year. The HomeOwners Alliance, which aims to represent the interests of domestic property owners and aspiring buyers, issued the proposal in response to a government review of the homebuying process. Under current rules, if you buy your home from an agent or mortgage broker, then sell it, you can only recover up to £2,500 ($3,000) of the original deposit – but this is capped at