| As the property market begins to show signs of | | | | to buy) until contracts have been formally |
| improving in the UK, the dreaded practice of | | | | 'exchanged'. |
| gazumping has returned. Being "gazumped" is awful. | | | | Many a time the government has raised ideas to |
| You spend possibly months looking for your dream | | | | combat this problem, but most the time these ideas |
| house and finding a buyer of your house. Just as you | | | | come to nothing. What the government should be |
| are about to exchange contracts you get a phone | | | | doing is forcing all sellers to enter into a 'lock out' |
| call from the seller of your dream house telling you | | | | agreement with their potential buyers. If you enter |
| that they have received an offer of $20,000 more | | | | into one of these agreements then the risk of you |
| and you can either meet that price or the seller will | | | | being gazumped is significantly less. |
| pull out of the sale. By this point you have probably | | | | Simply put the lock out agreement will give you, as |
| spent a fortune on survey and legal fees and the | | | | buyer, a period of exclusivity (say three months or |
| thought of losing out on the house is unbearable. Of | | | | whatever you agree) to attempt to complete the |
| course if you can't afford the extra price rise then | | | | house purchase. Within that time the seller legally |
| you have been gazumped and you will lose the | | | | agrees that he will not deal with any other potential |
| house. | | | | purchaser. If he does he will be in breach of contract |
| The Seller can pull out of the sale as he has no | | | | and can be sued. |
| obligation to sell to you (and you have no obligation | | | | |