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What are gazumping and gazundering?
Here's the gist
Gazumping is when a property is sold to a second buyer for more money than has already been agreed with the first buyer.
How does gazumping work?
- You’ve seen the house you want to buy.
- You’ve made an offer, which the owner has verbally accepted.
- You’ve had a survey carried out and arranged for a conveyancer to draw up the contracts. Now you're preparing to complete the sale.
- At the last minute, another buyer puts in a higher offer. The seller decides to sell to them instead.
Gazumping is hugely frowned upon but, legally speaking, there’s sadly not a lot you can do.
What is gazundering?
Gazundering is when, after the sale price has been agreed and before the exchange of contracts, a buyer withdraws their offer and makes a lower one or other last-minute demands.
This is risky for the buyer, as they are banking on the seller wanting to go through with it to avoid wasting money on conveyancers and the cost of relisting the property. If they’re part of a chain, they might accept the offer to keep things moving.
Is it legal?
Sadly, yes. Gazumping and gazundering are perfectly legal but considered unfair and unethical. It’s a broken promise that can cost you money.
Until written contracts are exchanged, all you have to go on with an accepted offer is a verbal agreement. It means a seller is still technically open to other offers.
You might have already paid for a surveyor or conveyancer to draw up the documents, which could be lost if you’re a victim of these practices.
Can gazumping happen in Scotland?
Gazumping tends to happen less in Scotland. Most estate agents in Scotland are also conveyancer. Under the terms of The Law Society of Scotland, gazumping isn’t allowed. Most estate agents don’t let it happen.
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