Recent pressure on the conveyancing system and property sellers need for security has led to the creation of reservation agreements, according to Gazeal.

The transaction technology platform outlined that the new product category solves a range of complex problems for agents and consumers.

The idea is that setting up a reservation agreement once an offer has been accepted will enable vendors and buyers to proceed and spend money on conveyancing, surveys and mortgage arrangement fees safe in the knowledge that they have protection in place.

It is hoped that this added security will reduce the risk of fall-throughs, helping to protect agents’ commission.

“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,” said Bryan Mansell, co-founder of Gazeal and a former agent.

“Being able to tell vendors that you are the safest agency to sell with in the local area due to the processes you have in place is a powerful message that holds weight with consumers,” he added.

Mansell does not believe that reservation agreements fit into an existing category in the moving process, but they provide agents and movers with increased certainty and a guaranteed way to reduce the chances of transactions falling through.

Once a sale is agreed, a reservation agreement guarantees a meaningful financial commitment by each party. This action protects consumers from gazumping or gazundering and safeguards the agent’s commission.

Mansell continued: “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,” Mansell continues.

“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.”