With the current housing market where demand is exceeding supply, the question may be asked is “gazumping” legal?
Gazumping is when a vendor agrees or accepts a purchaser’s offer in principle, but prior to exchange the vendor receives and accepts a higher offer, agreeing to sell to someone else.
In practice, this might look like a real-estate agent passing on your offer to the vendor, it being accepted, but the contracts not being exchanged straight away. During this time between accepting the offer and the exchange of contracts, the real estate agent is legally required to inform the vendor if a higher offer is made. If the vendor accepts this higher offer, you have been gazumped.
If you get gazumped the impact is two-fold, you lose the sale and you are unable to recover the costs you have expended on searches and inspections.
The best way to avoid being gazumped is to have your finance pre-approved, have your deposit ready to go so that you can exchange contracts quickly, offer a fair value, buy at auction, and get legal advice.
Contact Anthony, today.
This article is intended to be for information and educational purposes only and cannot be relied upon as legal advice. The information may not apply to your circumstances or to your particular situation. If you need specific advice or you have any questions, we welcome you to contact us directly.
