What is Gazumping?
WHAT IS GAZUMPING AND CAN IT HAPPEN TO ME…?
BY MALCOLM DAVIDSON – MORTGAGE BROKER IN SHEFFIELD
This is not illegal….and unfortunately this is something that does happen from time to time…
Gazumping occurs when a higher bidder bids on the property that you have had an offer accepted on. This can be a very emotional time and can result in money being lost if you have started mortgage and legal proceedings.
In England and Wales, when a sale is agreed, either party can pull out at any time up to exchange of contracts with no penalty, however this is rarely something that happens.
Estate Agents do not encourage gazumping as they have to let the original buyer down, but they are legally bound to put all offers forward to the seller. The decision to accept the offer is down to the seller.
Whilst you can’t stop being gazumped there are several things you can do to reduce the risk of this happening to you:
1. Make your offer on the basis that if it is accepted then the seller will stop marketing the property and put up a “Sold” board.
2. If your purchase is dependent upon the sale of your home then ensure the chain below you is progressing well and your buyer has their finances in place.
3. Contact me beforehand for a Mortgage Agreement in Principle and present this certificate to the seller at the time of offer, this will show that you are a serious buyer.
What is Gazumping???
By Malcolm Davidson – Mortgage Broker in Sheffield
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