| Gazumping: Seller accepted offer but then takes a higher one |
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Description
Who is the Rogue?:
Seller
How does it work?: Gazumping is legal although considered unethical. It's when a seller accepts an offer from one interested party, only to then accept a higher offer later on from someone else. It can prove disastrous and financially damaging for the buyer if it happens late in the process after he's paid for conveyancing and surveys. Usually, plain old greed is the major factor in gazumping. Sometimes, the buyer can provoke gazumping by procrastinating or stalling on the deal. How to avoid this scam?: First, ask your agent if they have a contract with the seller to prevent Gazumping. Many do. You should also ask to have the property taken off the market following your offer (or at least when valuation is instructed). Make sure you get it in "writing" or it means nothing. Don't forget an estate agent is legally obliged to inform the seller of any offers he receives up until exchange of contracts. Scam reviews
Average Scam rating from: 2 user(s)
To write a review please register or login. 2 of 2 people found the following review helpful
 Tuesday, 08 May 2007 Written by rogue Victim?:
Yes
Comments: I lost a house last year the day before we exchanged contracts. Another estate agent contacted the seller and convinced her at the last moment that she was underselling her property. They told her they had a buyer all lined up who apparently was willing to pay much more. I ended up losing a lot of money in solicitor fees and surveys but could do absolutely nothing about it. I only found out the reason it fell through when the offending estate agent contacted my own agent to gloat about the fact they had sabotaged the deal for us. It seems the mysterious buyer never materialised and the property ended back on the market a month or so later. So in this case the Agent was more the Rogue than the seller. My Location: Ealing
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Last updated: Tuesday, 08 May 2007 4 of 4 people found the following review helpful
 Sunday, 06 May 2007 Written by Nantango Victim?:
Yes
Comments: This happened to me twice and not much you can do about it. To minimize the risk, you can consider a time sensitive "lock in" agreement whereby buyer and seller agree to a non refundable deposit (e.g., 2%) if pre-agreed contingencies are not met. This needs to be drawn up by a solicitor who knows about these agreements (many don't!) and ideally should start when you receive the contract and not from acceptance of offer. My Location: London
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