You may not of hear of gazumping and gazundering, but they are two very real problems when it comes to selling and buying property. These are two words which your commercial conveyancing solicitors will be all too aware of as they are frequent issues which can crop up in the buying and selling properties. Find out all about gazumping, gazundering and how a good firm of commercial conveyancing solitors can help you to avoid them in this article.
What is Gazumping?
Your commercial conveyancing solicitors will be able to explain gazumping to you but if you have not yet chosen your solicitors here is a quick guide to what gazumping targets.
Once the price of the property has been verbally agreed between the buyer and the seller, it is then the job of a commercial conveyancing solitor to make their surveys, searches and pre-contract investigations. After that the seller's counselors team will write a draft contract which they hired by the buyer will have to approve. There are a number of other tasks the two teams of commercial conveyancing solicitors must complete before the 'exchange' of the property occurs and the contract becomes legally binding.
During this period before the exchange gazumping can occur. This is a particularly worried period which can last up to 10-12 weeks. It is scary because there are no legally binding contracts in place which make the transaction certain. Because no legal documents have been signed gazumping can occur and there is little the buyer can do about it.
Gazumping is when the seller suddenly raises the asking price for the property at the last possible moment, this means that the buyer has to accept the new price or pull out of the deal. Another form of gazumping is when the seller suddenly decides to sell their property to a different buyer, often at a higher price.
What is Gazundering?
Gazundering is almost the complete opposite of gazumbing and it is becoming more and more common as the housing market in the UK gets more and more unstable. Plummeting housing prices are a key factor in gazundering.
Gazundering is when the buyer suddenly demands a lower price, often at the very last-minute, right before the teams of commercial conveyancing solitors complete their surveys and contracts.
How Can I Avoid Gazumping and Gazundering?
It is very hard to avoid gazumping and gazundering, it is not the norm, but it is still fairly common and can be disastrous. One way you can avoid these two practices is to make sure you have a very good team of commercial conveyancing solicitors on your side. The faster all the transactions are completed, the smaller the window of opportunity for gazumping and gazundering is. This gives both parties less chance to get cold feet about the deal, and less time to decide to raise their price or lower their offer.