ClozeSure - Frequently Asked Questions

My buyers are more than one private individual, acting in concert with each other. Is ClozeSure available?

Yes, you are eligible for ClozeSure.

If any one of your buyers fails in their part of their purchase obligations, after exchange of contracts, then your sale may fail to complete, potentially triggering an acquisition by ClozeSure.

My property burns down, falls down or is destroyed between exchange and completion of property contracts?

You will not be able to trigger ClozeSure.

Although ClozeSure cannot be triggered under these circumstances, if you have buildings insurance, you may well be able to make an insurance claim for the loss.

Note that you will not be entitled to a refund of the ClozeSure fee.

We have not yet exchanged contracts for the sale of my property and may not do so for a number of days. Is ClozeSure available?

You can apply for ClozeSure at any time prior to, and on, exchange of contracts and receipt of the 10% deposit from your buyer.

ClozeSure will start on the day you exchange contracts for the sale of your property and confirm receipt of the 10% deposit paid by your buyer. Your conveyancer will need to confirm both exchange of contracts and receipt of the 10% deposit.

If you change your mind, or your sale collapses prior to exchange of contracts, you will be entitled to a full refund of your fee.

My buyer is paying a deposit of less than 10% of the property agreed sale price. Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

To be eligible for ClozeSure the minimum deposit your buyer must pay at exchange of contracts is 10% of the agreed property sale price.

My buyer fails to complete contracts on the agreed completion date. What should I do and what happens next?

If you wish to trigger the guarantee, you should immediately advise ClozeSure, who will start the acquisition process.

Your buyer will be given (via the conveyancers) a Completion Notice, giving the buyer ten days to complete the purchase. If the buyer fails to complete, your sale will be deemed to have failed and your defaulting buyer will forfeit their 10% deposit. If you wish to trigger ClozeSure, we will purchase the property and pay 90% of the original sale price.

We’ve designed our system to be fast, efficient, and helpful, with an aim of completing our purchase of your property immediately after - on the same day - as your defaulting buyer fails to complete.

To make sure we meet this goal, we need to work closely with you and your conveyancer.

By working closely together, we can make sure that your onward purchase — if you are planning one — completes successfully and secures the property chain.

On completion, your conveyancer will deduct their fees, pay any estate agent’s fees, redeem any mortgage on the property (if you have one) and then send you the remaining proceeds of sale.

My buyer fails to comply with the Agreement of Sale and fails to complete contracts on the completion date. This is due to a change in their own circumstances and through no fault of my own?

ClozeSure can be triggered.

The purpose of ClozeSure is to protect you against your buyer failing to complete the property purchase, through no fault of yours. ClozeSure will acquire your property and pay you the 90% balance (that is, the sale price less the 10% deposit paid by your buyer).

To make sure we meet this goal, we need to work closely with you and your conveyancer.

By working closely together, we can make sure that your onward purchase — if you are planning one — completes successfully and secures the property chain.

My application has been declined. Why?

Your proposal has been declined for a variety of possible reasons

The value of your property and agreed sale price exceeds our acceptable parameters.
Your property type is outside of our acceptable parameters.
We are unable to confidently verify our valuation of your property.
The location of your property.

We’re sorry not to be able to secure your property sale at this time.

My application has been referred for approval. Why and what happens next?

Your proposal has been referred to our property acquisition team for assessment for a variety of possible reasons

These could include:

The value of your property and agreed sale price exceeds our acceptable parameters
Your property type is outside of our acceptable parameters; we are unable to confidently verify our valuation of your property
The location of your property.

Your proposal is being assessed and we will be in touch with you shortly with our decision

My buyer asks for a delay. What should I do?

This is entirely up to you. You could grant them a delay or this could result in a ClozeSure acquisition.

If you are able, and feel inclined, to granting your buyer a delay you are free to do so. You must inform us immediately of your revised Completion date so that your guarantee’s coverage period can be extended (subject to a maximum of 2 weeks).

If you refuse your buyer’s request for a delay, and they fail to complete on the agreed completion date, your conveyancer will immediately send them a completion notice. At the same time, you should immediately advise ClozeSure, who will start the acquisition process.

What is my tax position if my buyer fails to complete, forfeits their deposit and I receive the balance from ClozeSure?

Your tax position is unchanged.

By proceeding with ClozeSure, you will receive your original contract price (10% from your buyer and 90% from ClozeSure). So, for tax purposes the position is no different than if you had received the full (100%) price from your buyer.

If I apply for ClozeSure in advance and then my sale collapses and contracts aren’t exchanged, am I entitled to a refund of my fee?

Yes, you will receive a full refund of your fee

If your sale collapses prior to exchange of contracts, you will be entitled to a full refund of your fee.

My property contracts were exchanged (and deposit received) a few days ago. Is ClozeSure available?

Yes, up to 2 business days after exchange of contracts.

You are only eligible to apply for the ClozeSure Guarantee before, or on, or within 2 business days after, the day of exchange of contracts.

Why do buyers fail to complete, post-exchange of contracts, and what are the main reasons?

Few people intentionally walk away from a 10% deposit and so the reason would have to be significant for a property buyer to do this.

These include:

Buyers’ own property sale falls through.
Withdrawal of mortgage or credit.
Death, accident or sudden illness.
Criminal charges, fraud or imprisonment.
Job recolation or loss or job offer withdrawn.
Other deterioration in the buyer’s financial circumstances.
Change of mind due to sudden fall in property market, rise in the cost of borrowing or, in the case of foreign buyers, significant currency fluctuations.

My property is being sold without vacant possession (because, for example, I have tenants living in the property). Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

A condition of ClozeSure is that you are providing vacant possession of your property on completion of your sale.

What if I change my mind and decide not to sell my property, after contracts have been exchanged and prior to completion?

You would not be able to trigger ClozeSure.

You will be in breach of contract and almost certainly be liable to return the deposit to the buyer (who may bring a claim against you for the costs, damages and losses they have incurred due to your breach of contract).

Note that you will not be entitled to a refund of the ClozeSure fee.

My buyer pulls out of the contract and refuses to complete due to a material deterioration in the condition of my property after exchange of contracts?

You will not be able to trigger ClozeSure.

If the deterioration is due to your failure to fulfil your obligations under the sale agreement, you are effectively in breach of contract. This means you would almost certainly be liable to return the deposit to the buyer (who may bring a claim against you for the costs, damages and losses they have incurred due to your breach of contract). ClozeSure cannot be triggered by a seller who is in breach of their sale contract.

Note that you will not be entitled to a refund of the ClozeSure fee.

My property buyer/s pulls out of the Agreement of Sale and completion of contracts due to my failure in any other way, i.e. failure to provide vacant possession of the property?

You will not be able to trigger ClozeSure.

You will almost certainly be liable to return the deposit to the buyer (who may bring a claim against you for the costs, damages and losses they have incurred due to your breach of contract). The ClozeSure Guarantee cannot be triggered by a seller who is in breach of their sale contract, which would include failure to give vacant possession on completion of the sale.

Note that you will not be entitled to a refund of the ClozeSure fee.

I am selling a property which I own, but do not live in. Is ClozeSure available?

Yes, you are eligible for ClozeSure.

As long as you are selling your property, unconditionally, with vacant possession and the other ClozeSure requirements are met (for example, a 10% deposit is paid on exchange of contracts).

My buyer/s is/are from overseas. Is ClozeSure available?

Yes, you are eligible for ClozeSure.

As long as your property sale contract fulfils all the other criteria and conditions of ClozeSure.

How do I provide feedback or raise a complaint?

We value your feedback and are committed to resolving any issues.

To. provide feedback, please go to the Contact Us section of the website, or send an email to support@clozesure.com.

Our goal is to ensure every customer is satisfied. If something isn’t right, please let us know so we can make it right. Again, just email support@clozesure.com.

I am in a negative equity position (that is, I owe more on my mortgage than my property is worth). In the event of a successful acquisition by ClozeSure, am I still liable to lenders for any shortfal

Yes, the transfer of your property to ClozeSure must be free of any mortgages.

If you are in a negative equity situation, you will need to negotiate and agree repayment terms with your lender(s), because your mortgage(s) on your property must be paid off in full as a condition of your sale (both to your original buyer and – if your buyer defaults – to ClozeSure).

What happens in the event of another COVID-like lockdown?

The recent Covid 19 crisis caused the Government to introduce temporary limitations on property purchases, which had a knock-on effect on completion dates.

Although these limitations are now lifted, we are likely to extend the period of our guaranteed offer for the duration of any similar limitations.

My buyer is a company, a trust or some other business entity (in other words, not a private individual). Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

ClozeSure is only available to a seller whose buyer/s are private individuals.

I am selling my property to a buyer who is connected to me in some way (family, friendship, education, work). Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

There is a risk for collusion between the parties (such as artificially inflating the property price). When a seller applies for ClozeSure, the application includes a declaration that the applicant has no connection to the buyer and that the transaction is entirely at arm’s length.

My property sale is “conditional”, in other words, subject to certain conditions being fulfilled (such as obtaining a planning consent). Is ClozeSure available?

Sorry, you are not eligible for ClozeSure

ClozeSure’s guarantee to purchase your property in the event of your buyer’s failure to complete is dependent upon your property sale being unconditional.

I am buying a property but not selling one. Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

ClozeSure has been designed to secure property sales, not purchases.

My property is not residential. Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

ClozeSure is not currently available for commercial and non-residential property.

My property buyer/s pulls out of the Agreement of Sale and completion of contracts due to my failure to disclose material information affecting the condition or value of my property?

You will not be able to trigger ClozeSure.

This is a breach of contract due to your failure to disclose material information affecting the property. You will almost certainly be liable to return the deposit to the buyer (who may bring a claim against you for the costs, damages and losses they have incurred due to your breach of contract). ClozeSure cannot be triggered by a seller who is in breach of their sale contract or who has provided false or misleading information in pre-contract enquiries.

Note that you will not be entitled to a refund of the ClozeSure fee.

If my buyer fails to complete, forfeiting their deposit, can I decide to keep my property and not proceed with a sale to ClozeSure?

Yes. You are not obliged to trigger ClozeSure. You can decide to keep your property, or put it back on the market.

Note that you will not be entitled to a refund of the ClozeSure fee.

I am notified in advance of my buyer’s pending failure to complete. What should I do?

Inform ClozeSure immediately so that we can commence our own conveyancing process. Our acquisition process activates when your buyer fails to complete on the agreed Completion Date.

We aim to complete our purchase of your property and put you in funds on the same day as your buyer failing to comply with the completion notice and forfeiting their 10% deposit in your favour, usually 10 working days after the failed completion date.

When ClozeSure purchases my property, am I still liable for my estate agent’s fees?

Yes, you continue to be liable for all the fees due to your Estate Agent. The fees will be deducted from your sale proceeds by your conveyancer and paid over to your estate agent.

The purpose of the ClozeSure guarantee is to put you back into exactly the same financial position as if your property sale had completed successfully on the contractually agreed terms. This means all relevant parties (such as your estate agent and conveyancer) are paid their fees in full and any mortgage or other charges on your property are paid off before you receive the remaining proceeds from your sale.

If I have successfully triggered ClozeSure, do I retain ownership of my property?

No. Your property is sold to ClozeSure.

When ClozeSure purchases my property, when do I receive payment, how much do I receive and to whom is it paid?

The same amount you would have received if your original buyer had completed their purchase.

As soon as ClozeSure’s conveyancing requirements have been concluded, payment is made to your conveyancer for 90% of the original sale price. Our aim is for this to take place ten days after your original completion date. When your conveyancer receives the money from ClozeSure, they will deduct their fees, pay any estate agent’s fees, redeem any mortgage on the property (if you have one) and then send you the remaining proceeds of sale.

When ClozeSure purchases my property, am I liable for any other costs and what deductions will be taken before I receive the balance of monies due to me?

You are still liable for all the costs and deductions which you would have paid if the original sale of your property completed successfully.

Your conveyancer will receive the full sale price (being the 10% paid by your buyer and the 90% balancing payment from ClozeSure) and will be responsible for making various deductions from the sale proceeds before passing on the remaining balance to you. Your conveyancer may charge you an additional fee for the extra work needed to complete the property sale to ClozeSure. This extra cost is not included in the ClozeSure guarantee.

If I trigger ClozeSure, does it matter if the value of my house has fallen?

No - ClozeSure guarantees to purchase your property for 90% of the sale value in your original sale contract.

When ClozeSure purchases my property, am I still liable for my conveyancer’s fees?

Yes, you are liable for all of your conveyancer’s fees.

The fees will be deducted from your sale proceeds by your conveyancer. Your conveyancer will also deduct the fees due to your estate agent and the amount required to redeem any mortgage on your property. You will then receive any remaining balance. Note that your conveyancer will make an additional charge to you for completing the sale of the property to ClozeSure.

The gap between exchange and completion of my property sale contract is more than three months. Is ClozeSure available?

You may be eligible for ClozeSure, subject to referral for approval.

The maximum period allowable by ClozeSure is three months. Any application for periods in excess of three months will be referred for approval and, if approved, may be subject to an enhanced fee.

My property is located in Scotland or Northern Ireland. Is ClozeSure available?

Sorry, you are not eligible for ClozeSure.

Scottish property law and sales operate differently to in Scotland and there is insufficient data for ClozeSure to operate in Northern Ireland. ClozeSure is currently only available in England and Wales.

In the event that I trigger ClozeSure, what documentary evidence of the property, sale and failure do I need to provide to ClozeSure?

There is a fair amount of evidence which your conveyancer and you need to promptly provide for our acquisition to proceed without delay.

Your conveyancer will need to confirm their receipt of the buyer’s deposit and provide evidence of the property sales contract; defaulting buyer’s details; the buyer’s failure to complete and reasons why; any charges - mortgages/loans or otherwise - on the property to be repaid; any recent valuations or surveys carried out on the property; property title, search results and any other information ClozeSure would not unreasonably require to carry out their due diligence, acquisition assessment procedures and conveyancing in order to be able to purchase your property in the 10 working days’ time frame.

I am a trust, company, property developer, executor or some other business entity (in other words, not a private individual). Is ClozeSure available?

Yes, you are eligible for ClozeSure.

As long as you are selling your property, unconditionally, with vacant possession and the other ClozeSure requirements are met, for example, a 10% deposit is paid on exchange of contracts and as long as your buyer consists of one or more private individuals.

My client's property contracts were exchanged (and deposit received) a few days ago. Is ClozeSure available?

Yes, up to 2 business days after exchange of contracts.

Your client is only eligible to apply for the ClozeSure Guarantee before, or on, or within 2 business days after, the day of exchange of contracts.

My client's property is being sold without vacant possession (because, for example, They have tenants living in the property). Is ClozeSure available?

Sorry, your client is not eligible for ClozeSure.

A condition of ClozeSure is that your client is providing vacant possession of their property on completion of their sale.

My client's buyer is paying a deposit of less than 10% of the property agreed sale price. Is ClozeSure available?

Sorry, your client is not eligible for ClozeSure.

To be eligible for ClozeSure the minimum deposit your client's buyer must pay at exchange of contracts is 10% of the agreed property sale price.

My client's property is located in Scotland. Is ClozeSure available?

Sorry, your client is not eligible for ClozeSure.

Scottish property law and sales operate differently to in Scotland. ClozeSure is currently only available in England and Wales.

My client is a trust, company, property developer, executor or some other business entity? (in other words, not a private individual). Is ClozeSure available?

Yes, your client is eligible for ClozeSure.

As long as your client is selling your property, unconditionally, with vacant possession and the other ClozeSure requirements are met, for example, a 10% deposit is paid on exchange of contracts and as long as their buyer consists of one or more private individuals.

My client is selling a property which they own, but do not live in. Is ClozeSure available?

Yes, your client is eligible for ClozeSure.

As long as your client is selling your property, unconditionally, with vacant possession and the other ClozeSure requirements are met (for example, a 10% deposit is paid on exchange of contracts).

My client's buyers are more than one private individual, acting in concert with each other. Is ClozeSure available?

Yes, your client is eligible for ClozeSure.

If any one of your client's buyers fails in their part of their purchase obligations, after exchange of contracts, then their sale may fail to complete, potentially triggering an acquisition by ClozeSure.

My client has not yet exchanged contracts for the sale of their property and may not do so for a number of days. Is ClozeSure available?

Your client can apply for ClozeSure at any time prior to, and on, exchange of contracts and receipt of the 10% deposit from your client's buyer.

ClozeSure will start on the day your client exchanges contracts for the sale of their property and confirm receipt of the 10% deposit paid by their buyer. Your client's conveyancer will need to confirm both exchange of contracts and receipt of the 10% deposit.

If the sale collapses prior to exchange of contracts, they will be entitled to a full refund of their fee.

My client's property sale is “conditional”, in other words, subject to certain conditions being fulfilled (such as obtaining a planning consent). Is ClozeSure available?

Sorry, your client is not eligible for ClozeSure

ClozeSure’s guarantee to purchase your client's property in the event of their buyer’s failure to complete is dependent upon their property sale being unconditional.

My client's property is not residential. Is ClozeSure available?

Sorry, you client is not eligible for ClozeSure.

ClozeSure is not currently available for commercial and non-residential property.

My client's buyer is a company, a trust or some other business entity (in other words, not a private individual). Is ClozeSure available?

Sorry, you client is not eligible for ClozeSure.

ClozeSure is only available to a seller whose buyer/s are private individuals.

My client's buyer/s is/are from overseas. Is ClozeSure available?

Yes, your client is eligible for ClozeSure.

As long as your client's property sale contract fulfils all the other criteria and conditions of ClozeSure.

If my client applies for ClozeSure in advance and then their sale collapses and contracts aren’t exchanged, are they entitled to a refund of their fee?

Yes, they will receive a full refund of their fee

If the sale collapses prior to exchange of contracts, they will be entitled to a full refund of their fee.

The gap between exchange and completion of my client's property sale contract is more than three months. Is ClozeSure available?

You client may be eligible for ClozeSure, subject to referral for approval.

The maximum period allowable by ClozeSure is three months. Any application for periods in excess of three months will be referred for approval and, if approved, may be subject to an enhanced fee.

Does ClozeSure pay commission if I arrange for my client to purchase a guarantee?

It is an option for Estate Agents or Conveyancers to receive remuneration for the introduction of business to ClozeSure.

You will also be doing your clients a valuable service by drawing their attention to the availability of a product which brings peace of mind to the stressful property-selling process.

Who are ClozeSure?

ClozeSure is a private limited company specialising in the provision of residential property purchase guarantees and acquisitions.

The business has its property company in the UK and its admin and operations team in the Channel Islands, enabling efficiencies to be passed on to consumers in reduced fees.

If my client has purchased ClozeSure and triggers it due to the failure of my client’s purchaser, what are my responsibilities?

If your client's buyer has failed to complete on the contractual completion date, it is assumed you will be instructed to serve a Notice to Complete. This is the point at which your client must trigger ClozeSure.

This is so that the ClozeSure solicitors can immediately undertake the necessary due diligence and prepare the appropriate paperwork to effect a transfer to ClozeSure if your client's buyer fails to complete within the relevant Notice period.

You will need to send a full conveyancing pack to the ClozeSure solicitors and respond promptly to any enquiries they may raise and, of course, you will need to approve the relevant transfer paperwork. How you document your relationship with your client is entirely a matter for you in terms of client care letters, etc but you may wish to make provision for any additional costs you may incur in dealing with the ClozeSure solicitors.

ClozeSure's solicitors will be instructed to use all reasonable efforts to achieve completion of your client's property (for 90% of the original purchase price) immediately after the Notice to Complete has lapsed (assuming the original buyer fails to complete).

When is the right time to buy ClozeSure?

Before, on and up to two business days after, exchange of contracts.

When the sale terms have crystalised, the buyer has paid the 10% deposit and the completion date has been fixed.

Is ClozeSure regulated?

ClozeSure is a guaranteed offer to acquire the seller's property that grants the seller the option to oblige ClozeSure to purchase their property for 90% of its agreed sale price.

It is not a contract of insurance and accordingly it is not required to be regulated.

If my client’s sale falls through, are they obliged to sell their property to ClozeSure?

No, they are not obliged to sell their property to ClozeSure and are free to keep their property or sell it to another party.

ClozeSure is a Purchase Option Agreement granted by us to the property seller, that obligates us, if triggered by the seller, to acquire the property in the event that the seller’s contract of sale fails due to their buyer’s default.

How long has ClozeSure been in business?

ClozeSure Group Ltd, was incorporated in Jersey on 1st August, 2021.

Prior to this, time, resources and investment were spent validating and developing the ClozeSure product concept with potential customers, lawyers and other stakeholders.

How are ClozeSure funded?

ClozeSure has secured significant funding via a mixture of equity and debt from both institutional and private investors in the UK and Channel Islands.

We have partnered with, or are backed by, some of the most established, dynamic and reputable companies with long histories in property services.

What if my question is not listed?

Please consult our detailed Homeowner FAQ's for further information.

If you cannot find it there we offer a live Chat via our website or email your enquiry to support@clozesure.com.

Will ClozeSure still proceed under its guarantee if there has been a fall in property prices between exchange and completion?

Yes, the ClozeSure guarantee is to step into the shoes of a defaulting buyer and pay 90% of the agreed sale price (10% having already been paid at exchange of contracts).

Are ClozeSure good for the money and able to meet their promises and fund their acquisitions?

Whilst we are a young company, we are built for the long term – with a highly experienced management team and best of class advisers, partners and suppliers with long reputable histories in property, insurance and financial services.

We strive for excellence and aim to exceed expectations in all that we do. We are financially strong, sufficiently capitalized and have secured substantial off-balance-sheet financing to fully fund our future acquisitions and support our corporate growth.

We take ourselves and our responsibilities very seriously and, above all, deeply respect the faith and trust that our customers place in us. We are here to give our customers peace-of-mind and certainty of the sale of their homes … and that is exactly, and unfailingly, what we will do.

Will ClozeSure pay my additional fees if my client triggers the guarantee and I am engaged in further conveyancing work with ClozeSure’s solicitors?

No. The ClozeSure guarantee does not cover additional conveyancing costs, which would be for your client's account.

How does the property acquisition process work?

ClozeSure's role in the property acquisition process is outlined here.

Who buys ClozeSure guarantees?

Sellers – or their conveyancers and estate agents, on their behalf – of residential properties in England and Wales, where the property is being sold with vacant possession and a 10% deposit is payable on exchange of contracts.

Is ClozeSure a contract of insurance?

No. ClozeSure is not a contract of insurance, nor an insurance company.

The ClozeSure Group is a well funded property company who aim to acquire and profit from the ownership of saleable residential properties in England and Wales.

ClozeSure is a Purchase Option Agreement, where the seller has the option to oblige (or not) ClozeSure to purchase their property for 90% of their agreed sale price in the event that their buyer pulls out following exchange of contracts (forfeiting their deposit).

Are there terms and conditions?

Yes, the terms and conditions of ClozeSure’s guarantee are available below.

Key terms include the need for the buyer to pay a 10% deposit to the seller's conveyancer on exchange of contracts. The property must be residential, the sale contract must be unconditional and the period between exchange and completion must not exceed three months. Vacant possession must be given on completion.

Here are the Full Terms & Conditions .

ClozeSure FAQs