When the property market starts to improve and the price of properties rise then so does the unfortunate events surrounding gazumping. The most common practice is evident when the vendor agrees to accept your offer on a property but continues to market the property and then accepts a higher offer, at this point you can consider yourself ‘gazumped’. Regrettably this practice is not illegal, current legislation does not protect the buyer when too many buyers are chasing too few properties and lenders effectively auction the mortgage on the property to the highest bidder.
GazunderingWhen the property market has stalled or is in the process of recession immediately prior to exchanging contracts – the buyer suddenly offers a lower price than his or her original offer, knowing the seller is then put in the ambiguous position of not wanting to lose the sale.