How to avoid gazumping in the United Kingdom

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2. You have found your dream home. You put the offer in, and it has been accepted. You’ve popped the corks on the champagne and are looking forward to your new life. Then suddenly you get a call from the estate agent to learn that at the last minute the seller has accepted a higher offer from another party. Not only have you missed out on your dream home, but you are back to square one with your property search. You have just been gazumped.  It’s an odd word and a horrible thing to have happened to you. But it’s not illegal. Until the contracts have been exchanged it is nothing more than an informal agreement. Accepting an offer on a house is not legally binding and the seller is allowed to accept other better offers should they want to. Of course, it is a very bad form but when there is money involved manners and ethics have a habit of going out the window. Fortunately, gazumping happens a lot less in the UK now than it used to. But that is no reason to be complacent. If you have found your dream home and really don’t want to miss out, then there are certain steps you can take to make sure that you are not a victim of a gazumping. Be organized One of the main ways to avoid being gazumped is to narrow the window of time in which it can happen. The best way to do that is to be organized. Make sure you have your finances in place and an ‘agreement in principle’ for your mortgage if you are getting one. Appoint a solicitor and make sure you have all your documentation ready to give them as and when needed. If you are part of a chain and selling as well as buying, then make sure that process is all ready to move too. The shorter the time between agreeing with the sale and signing the contract, the less likely it is for anything to go wrong. Ask for the property to be taken off the market Once you have your offer accepted, ask the seller to remove the house from the market and any listings sites. Ask the estate agents to remove any signage and generally make sure that there is no further evidence that the house is for sale. They are not legally obliged to do this but if they are reluctant then you may need to ask for reasons why. Apply polite pressure You need to keep things moving. House sales tend to move slowly but if you apply polite and reasonable pressure to the right people you can keep things moving. Keep in regular touch with your solicitor and mortgage broker to make sure the process is moving along. You should also make sure you sign and return any documentation as promptly as possible. Get close to the sellers

3.  We don’t mean in a ‘keeping watch over the house with binoculars’ kind of way. But if the opportunity presents itself to meet the sellers, do so and be as friendly as possible. Make it clear how much you love the property and how much it means to you. There are no guarantees of course, but the personal touch can help, and it might just make them think again about pulling the rug from beneath you at the last minute. Think about going exclusive There are contractual agreements out there for just this kind of situation. Essentially you will be asking the seller not to seek or accept offers from anyone else for a certain period. It can be very tricky to get sellers to sign these, and for good reason. Why enter into a contract you don’t have to be in? But they can work. Speak to your solicitor for more information. Get insured A home buyer’s protection policy will cover you for the loss of upfront expenses should the seller accept a better offer. It won’t be much comfort in terms of losing out on your dream home but at least you won’t be out of pocket too. Change the way you buy If you go down the traditional route of buying a property using an agent, putting in an offer, and waiting for the sale to go through, there will always be a chance of getting gazumped. However, you can buy property in other ways that make it impossible. If you buy property at auction then there is no offer process. You bid for the property, and if you are successful, you buy it there and then. No offers, no waiting around, no gazumping. Of course, buying at auction comes with its own set of problems. You’ll need to pay a deposit on the day and then make up the balance within a certain timescale or lose your initial stake. You also need to have viewed the property and have read the legal pack to find out if there are any issues with the property. The above steps will help to reduce the chances of being gazumped but there is always a risk when buying a house. As we mentioned above, when it comes to money people can make strange decisions and behave in ways they wouldn’t ordinarily

4. do. There will always be an element of trust involved, and you have to cross your fingers and hope it all goes well.  Until you have signed on the dotted line and the exchange has taken place, things can still go wrong. All you can do is do your homework, be organized, take the right steps, and then hope it all goes well. Gazumping in the United Kingdom is thankfully becoming less common and is generally frowned upon, but it’s not yet eradicated. If you would like to know more about how to avoid being a victim and what more you can do about protecting yourself, get in touch with a member of our team. We look forward to hearing from you www.propertyclassifieds.co.uk avoid gazumping in the United Kingdom  Share This Page Share  Share Tweet Sign up today We’ll keep you in the loop of all the new exciting opportunities. Join Our Newsletter - Today The Property Website That Allows You To Sell Your Home Fast To Investors For The Best Cash Price The result is a quick house sale for homeowners & property sourcing at it's best for investors. We can also recommend the best local estate agents if you want to put your property on the open market. Website Sell House Fast Property Investments FAQ Blog Terms of Use Privacy Policy Support Password Retrieval Contact Us Site Map

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