Conveyancing solicitors and estate agents have called on the property industry to develop legally binding preliminary contracts to reduce the number of house sales that fall through.

At an event hosted by the president of the E-Homebuying Forum, Sir Bryan Carsberg, last week, representatives from firms of solicitors, estate agents and conveyancers proposed that buyers and sellers commit to a sale, subject to agreed conditions, and put down a 5-10% deposit to ensure the transaction goes ahead.

They said the change would introduce greater certainty at an early stage in the process, and identify timewasters and speculative sellers.

Carsberg said: ‘Gazundering and gazumping can be avoided if the buyer and the seller reach a preliminary agreement.’

He said preliminary contracts should not punish parties who pull out of sales for genuine reasons, for example after an adverse survey or if the buyer is unable to secure enough finance.

In such circumstances, the contract should become void, he suggested.

Carsberg said the forum will work to develop a standard form of voluntary agreement in the coming months.Ian Floyed, chief executive of Leicester firm MyHomeMove, said: ‘We’ve seen how preliminary contracts work so well in other countries, including Australia and France.’

Chris Bean, partner and head of residential conveyancing at Sussex firm Gaby Hardwicke, said: ‘There’s a will to make this change and a desire to provide increased certainty in these austere times.’

But he added: ‘While it would be great in situations where there are just two parties, chain conveyancing doesn’t lend itself to tying people down at early stages.’