Lets reduce the worry and cost of property purchase and sale.

happywriter

New Member
Apr 25, 2009
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The estate agents and solicitors must like the English system of property purchase, because they can "sell" the same property several times - making commission for each transaction.
Purchasers and sellers however put up with a lot in UK, compared to other countries. Portugal has an efficient system which works, it has the following advantages:-
- No 'chains' of buyers and sellers, each dependant on many transactions working over which they have no control.
- At an early stage, before paying many costs, the buyer and seller can be assured the sale will occur at the agreed amount.
- No expecting a 'better offer', and guzumping.
- Ability to plan a house move, with some certainty.

How is that done? What makes it different and work, in a country which was not famous for efficiency when it was instigated?

It is a simple system:-
The property is advertised. The buyer and seller agree a price, after any inspections that the buyer wants to make.
A promissory contract is written, which is completely legally binding. That contract is simple, merely:-
- identifying the buyer,
- identifying the seller,
- identifying the property,
- stating the transaction price,
- stating the time limit before which the sale must be made.

The buyer pays 20% deposit.
If the buyer does not make the agreed purchase, they forfeit the deposit.
If the seller does not make the agreed sale - at that price, and time, they pay back double the deposit.

By making those conditions without exception, there are few of the problems of UK property transactions. It means that nobody will enter into a chain of transactions, as it is too financially dangerous. So most people will sell one property, rent for a while, purchase again.
As each transaction is fairly certain, they do not have the uncertainty of the high possibility of a 'failed' sale, gazumping, etc.

UK should have the same system. Most people would agree - apart from solicitors and estate agents!

Happywriter.