Gazumping
- 'Gazumping' describes sellers who initially accept an offer from prospective purchasers.
- In a rising price market a second purchaser offers a higher offer and the seller accepts. The first buyer has been gazumped! (Goes up).
- The first buyer is invited to enter a price war or withdraw, thereby loosing any legal and survey fees paid prior to exchange - after this point the contract is legally binding. Should gazumping occur a number of times the loss of such fees can prevent the first buyer purchasing any property at all, as their deposit was consumed by fees. Some have been bankrupted by the process This practice is banned in Scotland following such outcomes.
- See analysis following Gazundering.
Published: 8 November 2013
Last Updated: 17 November 2021