What is gazumping?
Gazumping is when someone else makes a higher offer on a house you're in the process of buying, and the seller accepts that offer. This might happen if the new buyers offer more money for the property or are in a better position to complete the sale than you. For example, they might be cash buyers or aren’t in a property chain.
Key takeaways
- Even if your offer on a house is accepted, the seller can still accept an offer from someone else.
- Gazumping can happen at any stage of the home-buying journey, while the house is listed as ‘sold subject to contract’.
- There are steps you can take to keep your home purchase moving and help avoid unnecessary delays.
Gazumping is legal in the UK.
If you’re buying in England or Wales, then until the exchange of contracts is completed, there isn't a legally binding agreement between the buyer and seller. This means a seller can choose to accept a different offer before the sale is finalised. The process is different in Scotland.
So, even if you’ve had your offer accepted, it’s possible that another party could push you out of the purchase. There’s a possibility of you being gazumped while the property is sold subject to contract.
Sometimes timing can be an issue in the home-buying process. For example, your surveys may be taking too long. Or it could be that a buyer offers a higher amount for the property.
You can’t completely avoid it, but you can try to reduce the risk of it happening. These are some steps you can take that may help.
What is gazundering?
Gazundering is when a buyer withdraws their offer and makes a lower one, after their original offer was accepted. It’s also called gazundering if the buyer makes other last-minute demands.
It’s a risky move for the buyer. If the new offer is rejected, you risk losing money you have already spent. The seller could also incur costs to relist the property, and they may lose the new home they want to buy.
If the sellers are part of a property chain, they might accept the offer to keep things moving. Like gazumping, gazundering is legal.
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Gazumping is legal and can be quite common.
It can be an upsetting setback in your home-buying journey. But there are options to consider if it does happen to you, from appealing to the sellers to re-evaluating your finances.
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No. Once the seller accepts an offer, either verbally or in writing, their solicitor or estate agent cannot accept another one.
To accept a later, higher offer, the seller must appoint a new solicitor or estate agent.
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Typically, you can’t sue for gazumping. In England and Wales, the agreement between you and the seller isn’t legally bound until you exchange contracts.
You may be able to seek legal action in certain circumstances. It’s best to get professional legal advice to understand your options.
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It’s your decision whether you accept a gazumping offer. Some people may accept a higher offer for their property. But be mindful that switching buyers can cause delays as new checks on the potential buyer will need to be completed.
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