SPECIAL FEATURE: ClozeSure: Why property transactions need a safety net

Anyone who has had a property transaction collapse knows how devastating it is, from the financial burden to the time lost and the emotional strain.

And while the proportion of failures that happen post-exchange is relatively small, the consequences for those who experience them are disastrous.

This post-exchange nightmare is exactly what happened to a sibling of mine, which got me thinking about viable solutions. And that is how ClozeSure was born.

Acting as a safeguard, ClozeSure is a first-of-its-kind product that guarantees sellers receive 100% of their agreed sale price if their buyer fails to complete after exchange.

So how does it work?

Sellers apply for ClozeSure at a modest fee – just 0.06% of the sale price, typically a few hundred pounds, which is payable on completion. If their buyer fails to complete post-exchange, ClozeSure steps in as the new buyer and, on the expiry of the 10-day notice to complete, ClozeSure will immediately acquire the property for 90% of its agreed sale value. This, along with the 10% forfeited by the failed buyer, ensures the seller gets 100% of their agreed sale price. In time to complete their onward purchase.

This provides total certainty and peace of mind for sellers from the moment they exchange contracts, during what is typically the largest and most stressful financial transaction of their lives.

This certainty is particularly welcome for those in a chain, who are financially and emotionally invested in their new home, and for risk-averse probate sales.

One recent commentator on an Estate Agent Today article summarised it well: “I totally get that sales falling through after exchange is pretty uncommon but they definitely do happen and the fall out can be catastrophic. We had one here a couple of years ago and to be fair it was horrific – not just for me but mainly for my vendor who had already exchanged on her onward, packed up, booked removals etc.”

ClozeSure can solve this head on – working as a binding property purchase contract that the seller can fall back on.

For conveyancers, ClozeSure offers a unique opportunity to enhance client care and reduce post-exchange risk exposure. ClozeSure’s Purchase Option Agreement has been drafted in full compliance with UK property law – making it a tool that can be offered as part of your client pack, providing a proactive risk management strategy that can help your firm stand out while improving outcomes for clients.

Ultimately, the property industry needs to embrace innovation that puts people first. Transactions shouldn’t feel like a gamble. With ClozeSure, they don’t have to. It’s time we gave sellers the confidence and peace of mind they deserve and make failed completions a thing of the past.

Kindly shared by Peter Thompson, founder ClozeSure