Ancient rules could disrupt major town housing development

Thursday 28 September 2017

An obscure property rule dating back more than three centuries has the potential to disrupt plans for a major housing development in town.

Jersey’s Judicial Greffier is set to ask the Court whether recent Andium Homes property contracts are null and void because they didn’t include the price paid for recent acquisitions.

The contracts relate to seven properties around the Town Park, which would pave the way for social housing to be built in the area.

The States Assembly heard this week that the value of the acquisition – said to be around £11million – was left off contracts for ‘commercial sensitivity’ reasons, but the Solicitor General said that this may go against regulations dating back to 1602 and 1771.

He added that the contracts had been able to pass through the Royal Court without this “fundamental” part of the contract because the Judicial Greffier only tended to scrutinise the content of contracts when they were ready to be listed, which often occurred two to three days later.

He said that the Judicial Greffier was now looking into the matter, with a view to asking the courts for firm directions on how to resolve the matter – possibly through an order for revised contracts to be passed through the court. He added that it was a “benefit” that the matter had been raised publicly and that directions could be given to firms generally.

Despite strong concerns from States Members over the revelation, Andium have since defended their actions – and explained that even contracts involving public land had been processed in such a way.

Collas Crill advised on the transactions. In a statement, Property Partner Martin Le Boutillier explained that a “global price” had been agreed with the vendor for the land, rather than splitting up parts of the site. He added that all of the relevant purchase prices had been disclosed to the Chief Minister before the acquisitions were authorised. 

“The fundamental issue is that the correct Stamp Duty is paid in relation to each transaction. The purchase price is referred to in the contract but this may be done by reference to another agreement which has happened on a number of occasions in contracts passed before the Royal Court. There is nothing extraordinary about passing a contract in this way,” Mr Le Boutillier said.

“As a firm, we are aware of various contracts that have been passed before the Royal Court of Jersey over the years where no express "Prix D'Argent" or "price" has been included or where the consideration is on the basis of a related agreement or where a very nominal "Prix D'Argent" or "price" has been specified which does not reflect the market value of the property but indicates some other arrangements between the parties to the contract.  Indeed various examples of such contracts involve the Public of the Island of Jersey,” he added.