Voluntary Reservation Agreements

Therefore, subject to the final form of the agreement and the agreed procedure, it would appear that booking agreements will have their place in a significant number of transmission transactions. More advance information and more security will clearly help all consenting parties. However, they are unlikely to be appropriate for any transaction, particularly where there are complex circumstances or when individuals wish to retain their contractual freedom until the time of the exchange. As real estate activities in England have hardened with the introduction of professional qualifications and higher standards, the introduction of mandatory booking agreements is required. The UK government has promised to make the process of buying and selling homes simpler, faster and more transparent, and the industry itself is working to achieve the same goals. Housing Minister Sajid Javid said that real estate agents will be required to have a professional qualification and be transparent about fees. It wants to encourage the application of voluntary booking agreements, but some players in the real estate sector believe that agreements that would prevent one of the parties from withdrawing should also be mandatory. According to a World Bank report last year, the UK ranks 47th in simply acquiring and registering real estate, and according to a study by the Department of Business, Innovation and Skills, about 70% of hunters are in favour of changes to remove gassing. A new survey, published in April by YouGov on behalf of HomeOwners Alliance and BLP Insurance, showed that 75% supported the introduction of a reservation agreement requiring buyers and sellers to make a non-refundable down payment in order to compel both parties earlier in the process.

He also noted that 80% want buyers to show proof of funds before they are able to make an offer to buy a property. It`s only a matter of time before that happens, according to Milton Rodosthenous, founder of the letsBid online auction. “Booking fees are a big step forward because it eliminates waste of time and stops gassing and looking,” he said. “Companies like LetsBid are in pole position to make this a reality, because our model achieves exactly the result that everyone is looking for and it won`t take long for it to become the norm when buying a property,” he added.

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