"It's clear that consumers and agents are at the point where they want to try new things as the moving process is too slow, cumbersome and, in many ways, broken."
Transaction technology platform and supplier of reservation agreements, Gazeal, says the new category it has created solves a range of complex problems for agents and consumers.
Reservation agreements, which are recommended in the government's 'How to Sell' guide, provide buyers and sellers with certainty through a legally binding commitment which requires any party pulling out without good reason to pay a fee.
By setting up a reservation agreement once an offer has been accepted, vendors and buyers can proceed to spend money on conveyancing, surveys and mortgage arrangement fees safe in the knowledge that they have protection in place.
According to government estimates, approximately a third of property transactions fall through before completion. With an average of around 100,000 completed transactions each month, according to HMRC, up to approximately 33,000 could be collapsing.
Bryan Mansell, co-founder of Gazeal, commented: "Understandably, an agent's focus is often getting the instruction and then launching the vendor's property on the market. However, more emphasis on getting people moved provides benefits for all parties.
"This change in mindset from both agents and consumers has been demonstrated by many of our customers doing away with 'Sold Subject to Contract' boards and replacing them with 'Reserved' boards.
"Agents currently have a range of products and services to help them complete transactions, including CRM software, prospecting, conveyancing partners, sales progression and so on.
"However, a reservation agreement is a new tool in their armoury that helps to progress sales securely, contributing towards faster exchanges and fewer fall-throughs.
"It's clear that consumers and agents are at the point where they want to try new things as the moving process is too slow, cumbersome and, in many ways, broken.
"The last year has shown us just how many transactions there can be, but also how fragile the current process is.
"If the market continues to thrive following a successful vaccine rollout, tools like reservation agreements can restore consumers’ faith in the moving process and mark the first step in creating a more effective system of buying and selling properties," he concludes.
