Sellers will be guaranteed the full price of their property if the buyer pulls out after contracts have been exchanged, in a new service which aims to mitigate the risks associated with property transactions.
ClozeSure will guarantee sellers 100% of the agreed sale price if the buyer fails to complete after exchange, stepping in as the new buyer of the property and paying 90% of the agreed sale price. The remaining 10% deposit will be forfeited by the original buyer and retained by the seller.
The company has been co-founded by Peter Thompson (pictured), founding principal partner of St James’s Place Wealth Management, and Phil Beville, previously of St James’s Place Wealth Management, Credit Suisse First Boston and Microsoft. The founders are supported by a team specialising in finance, property and technology and the venture is backed by Rightmove, lender TogetherMoney, Hampshire Trust Bank (HTB) and peer-to-peer lending platform easyMoney.
Both buyer and seller must be using the services of a registered conveyancer or licensed solicitor to qualify for the the service, and sellers will agree to pay 0.06% of the sale price on completion if the sale proceeds as planned.
ClozeSure is applied for after an offer has been accepted and the buyer’s conveyancer has concluded due diligence. When both parties are ready to exchange contracts, the seller, their conveyancer or estate agent apply to ClozeSure, which validates the sale price and issues a guaranteed offer.
Once contracts have been exchanged, the offer becomes legally binding and the seller is guaranteed the full sale price of the property. By day 10, if the buyer has failed to meet the deadline in their Notice to Complete, ClozeSure completes the purchase of the property.
Founder and director Peter Thompson explained:
“ClozeSure’s property purchase contract is something that you hope you never need to use, but it’s there when things don’t go to plan, removing the logistical, financial and emotional pain associated with a transaction falling through at what is already an incredibly stressful and anxious time, particularly for those in a chain.
“ClozeSure is an affordable safeguard that most sellers will never need, but one they’ll be immensely grateful for if things go wrong between exchange and completion. For agents, ClozeSure can greatly enhance your service offering for customers and help you stand out in a competitive marketplace, while also creating additional income through referrals.”
The company says it is addressing a long-standing gap in the market by providing a layer of protection for sellers, particularly those involved in chains or probate sales, while simultaneously enhancing the service proposition of agents and conveyancers.
ClozeSure is actively seeking partnerships with estate agencies, conveyancing firms and property portals and welcomes enquires at https://www.clozesure.com/contact-clozesure/
One Response
What nonesense is this? No one ever withdraws after exchange of contracts, and even if they do the seller will be lauging all the way to the bank anyway.