Buying or Selling Jersey Freehold Property

In basic terms, the following procedure will be followed (in no particular order) by your conveyancer concerning advising on purchasing a Jersey freehold property.

• Check title
  Parslows Jersey conveyancers will check title to the property to ensure the vendor is entitled to sel.  In other words they actually own the property.
• Review search replies
  We will send out search letters to various agencies who may be able to provide information regarding the property, and all rights, either over or for the benefit of the property, are adequately set out in the draft contract.
• Review of draft contract of purchase
  We will review the description of the property given in the draft contract. This is to ensure it corresponds with the information provided in the Public Registry.
• Property visit
  After title has been checked, the draft contract has been reviewed, and the search letter replies received Parslows, Jersey conveyancers will attend to ensure that the Vendor’s draft sale contract corresponds with the circumstances on site.

Purchasing freehold property in Jersey requires that you hold a valid registration card providing entitlement to purchase. If you do not have this card and are qualified to hold one, you should attend the population office as soon as possible to obtain it.

While your bank will request a survey for a valuation, this is to ensure that its loan to you is safeguarded. This is not necessarily comprehensive, and you should consider carefully the benefit of instructing a surveyor to carry out a full survey.

A Jersey conveyancer will not check the physical condition of a property. This is for a surveyor who will have the professional experience to do so. A conveyancer will check a site to ensure the property’s boundaries correspond with the draft contract and other such legal issues.

Stamp duty is a duty levied by the Treasurer of the States and is applicable to every contract which is passed before the court. First-time buyers may qualify for reduced Jersey stamp duty. It is payable by the buyer at the time of purchase.

Purchasing freehold property does not require you to sign a contract; instead, it is passed in the Royal Court, and you or your attorney will attend court on a Friday afternoon to swear an oath to abide by the terms of the contract.

If you so wish, you may attend Royal Court in person. Alternatively, you can, by power of attorney, appoint someone else to attend on your behalf for purchasing freehold property. If you attend court, you must wear formal attire. Failure to dress appropriately may result in the court refusing to pass the contract.

Jersey does not have the concept of Property deeds. A copy of the contract will be retained in the Public Registry and will constitute evidence of your title to the property.

Once the contract has passed before the Royal Court, you will be able to collect the keys to the property from the estate agent. The estate agent invariably negotiates the exact time at which possession is handed over.

You should have insurance in force at the point you purchase the Jersey freehold property.  If you are borrowing from a bank, they will insist on this and will require that they are named as an interested party on the policy. 

We would always suggest that you hold a Will to deal with what happens with your property when you pass away. If you do not do this, your property will be inherited under the terms of the Wills and Successions (Jersey) Law 1993.

If the seller has provided information that is materially incorrect, it could be a breach of warranty and actionable. However, while you are entitled to rely on answers in the standard seller’s questionnaire, issues relating to the physical condition of the property will need to be checked by a surveyor. A survey is always recommended.

Link to article on buying property https://parslowsjersey.com/2017/03/02/residential-property-jersey-purchasing-freehold-property/

If you are planning to sell a Jersey property it would be advisable to review your property drainage systems to ensure they comply with the law. A 2017 communique from the Minister for Infrastructure makes it clear that property surface water running into foul drainage systems will no longer be permitted. The communique states that his department are ‘seriously’ concerned about the impact to the sewers in the island and the risk of pollution in times of high rainfall.

What are the implications for you?

If your property drainage surface water system connects to the foul water system, it will need to be rectified by the owner. If not, it is likely to hold up a sale. We would advise all property owners looking to sell their property to review the situation and, if necessary, contact a property drainage specialist for further advice.

In the usual course, the bank will not provide 100% of the mortgage. As such, you will be required to make up the difference. This difference will include not only the balance for the purchase but also stamp duty and legal fees.

The bank will transfer funds direct to Parslows. You will also need to transfer the balance of funds to Parslows prior to the purchase of your Jersey flying freehold property. We will have provided you with a completion statement that sets out the total payments in full.

A loan secured against flying freehold property will attract stamp duty. This is in addition to the duty or tax that you will pay to purchase your property. You may qualify for reduced stamp duty if you are a first-time buyer.

While you will pass freehold property contract on a Friday, funds do not flow to the Vendor until the Tuesday immediately following.