Pioneering platform ClozeSure has launched to protect sellers, estate agents and conveyancers from risks during residential property sales, especially in the period between exchange and completion.
The product guarantees sellers 100% of their agreed sale price if a buyer fails to complete after exchange.
Sellers pay a fee of 0.06% of the sale price on completion.
If the buyer pulls out, ClozeSure pays 90% of the sale price the same day, with the 10% deposit already paid by the buyer going to the seller.
The company was set up by Peter Thompson, one of the founding principal partners at St. James’s Place Wealth Management PLC, and Phil Beville, who previously worked at St. James’s Place Wealth Management, Credit Suisse First Boston and Microsoft.
The team includes people with backgrounds in financial services, property and technology.
Thompson said: “Think of ClozeSure’s property purchase contract as analogous to insurance – the hope is you never need to use it but it’s there when things don’t go to plan, removing the anxiety, financial and emotional pain associated with a transaction falling through at what is already an incredibly stressful time.
“ClozeSure is an affordable safeguard that most sellers will never need, but one they’ll be immensely grateful for if things go wrong between exchange and completion.
“For agents, ClozeSure can greatly enhance your service offering for customers and help you stand out in a competitive marketplace, while also creating additional income through referrals.”
