What does ‘gazumping’ mean?
Gazumping is when a seller accepts one offer on a property, but then goes back on this agreement and accepts a higher offer from another buyer, pushing the original buyer out of the sale and back into the market.
Gazumping usually happens because the seller wants to get as much money as possible for their property, but might also occur if the buyer is dragging their heels over any part of the purchase. In this case, the seller might accept an offer from a buyer who is in a better position to complete the sale more quickly.
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Is gazumping legal?
The bad news is that gazumping is perfectly legal and can happen at any time before the contracts have been exchanged, without the seller suffering any major consequences, except maybe a mark on their conscience.
But if the seller accepts a higher offer once the contracts have been exchanged, or pulls out for any reason after that, the buyer can sue them for any losses this causes and may be able to keep the deposit.
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Will I lose any money if I’m gazumped?
If you’re gazumped, you’ll lose any money you’ve spent on surveys, or that you’ve paid to your conveyancer for local searches. The only way you’re likely to be able to claim this money back is if you’re gazumped after the contracts have been exchanged.
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What is ‘gazundering’?
Gazundering is when the buyer puts in a lower offer, or makes other demands, once the sale price has been agreed. This can sometimes be a cynical move from the buyer, particularly if the sale is time-sensitive or contracts are exchanged on the day of sale. But it can also be out of the buyer’s hands if they’re reacting to something that has happened at their end of the chain, or because of issues that have been flagged in a survey.