Buying in Jersey

Whether you have already found the property that you want, have just started looking, or have a property to sell, we are available to discuss your proposed sale or purchase, and to guide and advise you through what we understand will be a very important transaction.

We believe that it is crucial that a lawyer is involved from the earliest stages, to help and guide from the outset and for this reason we offer an obligation-free meeting with any prospective client within thirty minutes of a call and at no charge. 

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Property in Jersey

There are three main categories of property transaction in Jersey.

Freehold transactions mainly involve houses, and a buyer acquires outright freehold ownership of a property. 

Flying Freehold involves properties divided into units (usually flats, but occasionally houses). A buyer purchases what is known as a “lot” which entitles that party to the exclusive use and enjoyment of the relevant flat, garage, parking space and grants rights to the commonly owned parts of the property. A “Déclaration” is registered with the Royal Court which sets out the various rights and obligations in respect of each flat and the commonly owned areas and an Association of owners of lots is formed; the Declaration may be supplemented by House Rules. Flat owners are required to pay, usually by regular service charge, towards all communal costs. 

All freehold contracts are passed before the Royal Court on a Friday afternoon.

Share Transfer also involves properties divided into units (again, usually flats but can also be houses). The freehold is owned by a Company and a block of shares is bought which gives rights to a flat/garage/parking space. The Articles of Association of the Company set out the shareholders rights and obligations and there may also be a set of House Rules. Flat owners are required to pay, usually by regular service charge, towards all communal costs. 

A share transfer contract can complete on any working day.

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Housing Consents

 

Before a freehold or flying freehold property can be bought, consent must be obtained from the Housing Minister; a fee is charged by the Population Office and payment usually made through the Estate Agent.

Usually a buyer must have either been a Jersey resident for a minimum number of years, or been born in the Island and resident for ten years. There are other Housing Regulations which may be applicable to specific buyers, such as (j) category employees.

Although consent is not required to buy a share transfer property, consent is, in the majority of cases, required to occupy it.

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Who is involved?

The Lawyer

You should involve your lawyer at the very earliest stage. Walkers offer an obligation-free chat or meeting at no charge which will help ensure that you fully understand how things will progress and how you can help with the process.

·                     Before a property can be purchased, research must be carried out into the Sellers title. The lawyer will investigate this and inspect the boundaries of the property.

·                     The lawyer will obtain information regarding planning and utility supplies to the property.

·                     In the case of share transfer, the lawyer will also examine the statutory records of the company to ensure that all is in order before shares are transferred.

·                     In the case of flying freehold, the records of the Association will be examined.

·                     The lawyer will work with the lender's lawyer to make sure that the mortgage is in place

The Lender

·                     Without finance, there can be no purchase, so it is sensible to find a bank or other lender willing to lend before choosing a property. This will also ensure that you  know how much you can spend on your dream property.

 

·                     Banks and mortgage lenders will asses what to lend according to your circumstances. Offers such as fixed rate mortgages and first-time buyer discounts mean that it can pay to shop around.  

·                     You may be required to take out life insurance or other cover and there will be a wide range on offer.  You will not necessarily get the best deal on insurance from your lender.

·                     The lender will use a lawyer to prepare the mortgage documents, and you will be expected to pay their costs. Conditions of the mortgage are likely to include a survey and/or valuation of the property, which you will also have to pay for.

The Estate Agent

·                     The estate agent acts for the seller and negotiates the sale price and other terms, on the seller's behalf.

·                     The estate agent will instruct the buyer's and seller's lawyers about the terms that have been agreed and assist where needed as the transaction progresses.

·                     The agent will usually help with the co-ordination of the final arrangements for transferring utility bills, moving dates and times.

The Surveyor

·                     A surveyor or valuer is usually required by a lender to report on the property. The choice of surveyor or valuer will often be dictated by the lender. It is the buyer's responsibility to arrange the survey and/or valuation, and to bear the cost.

·                     Property is bought “as seen”, in the condition in which it is at the time of purchase.

·                     Claims cannot be made for any defects found after a property has been bought unless specific agreement is reached before contract is passed. Therefore, it is wise for a thorough survey of the property to be carried out beforehand.

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This checklist may be helpful in highlighting many of those who will need to know your new address.

·                     Banks

·                     Credit Cards

·                     Dentist

·                     Doctor

·                     Driving Licence (Parish Hall)

·                     Employer

·                     Garage

·                     Income Tax

·                     Insurance Company (car and house)

·                     Internet Service Provider

·                     Jersey Electricity

·                     Jersey Gas

·                     Jersey Water

·                     Jersey Post

·                     Medical Insurance

·                     Rates (Parish Hall)

·                     Pension Provider

·                     School

·                     Social Security

·                     Store Cards

·                     Telecom Provider

·                     Television License

·                     Vet

Julie Melia - T: 700 775 E: julie.melia@walkersglobal.com

Denis Worrall - T: 700 872 E: denis.worrall@walkersglobal.com