An MLC has called for reform of property buying practices to protect residents from losing thousands of pounds through collapsed property deals.
Gary Clueit MLC has sought leave to introduce a private member’s bill to tackle gazumping and gazundering, practices he described as “faintly absurd and deeply damaging”.
Gazumping occurs when a seller accepts a higher offer after agreeing a price with another buyer. Gazundering is when a buyer reduces their offer at the last minute.
“If a person buys a kettle or a TV set, the law is on their side, but when they commit to a home worth hundreds of thousands of pounds, our law leaves them exposed at the very worst possible moment,” Mr Clueit told the Legislative Council.
Cushion
He added: “First-time buyers have the smallest financial cushion of anyone in the market. When a collapsed sale burns through two or three thousand pounds of their savings, it can deplete the very funds they need to buy anything at all.”
The proposed legislation would be a “narrow surgical measure aimed at one specific issue, the gap between the handshake and the contract”.
Adjourned
However, the debate has been adjourned until November to allow consultation and engagement with the newly elected House of Keys following the September general election.
Kirstie Morphet MLC expressed concerns about the proposal, stating: “This motion is asking us to support the development of a bill that would fundamentally reform the residential conveyancing process.
“To me, that isn’t simply a matter of drafting legislation. It involves a huge number of policy decisions that would need to be made first.”
Dawn Kinnish MLC noted the issue has been discussed for more than three decades, saying: “Quite frankly, I went back as far as 1993 so we’re at 33 years with this issue being discussed.”
Mr Clueit indicated he is open to the legislation being progressed through other means including “under the auspices of the department”.