What is gazumping?
Gazumping occurs when a seller accepts a higher offer from a new buyer after already agreeing to sell to another buyer, which is legally permissible until exchange of contracts.
In English property law, gazumping is the act of a seller withdrawing from an agreed sale and accepting a higher offer from a different buyer. This can happen at any point after a verbal or written agreement but before the contracts are formally exchanged between buyer and seller.
The term matters because it leaves buyers vulnerable during the period between agreeing a price and reaching exchange of contracts, which can span weeks or months. During this time, even if you have made an offer and it has been accepted, the seller remains free to accept a higher bid from someone else. The property is not legally bound to you until exchange has taken place.
Gazumping is particularly common in rising property markets where sellers see an opportunity to secure more money. It can force buyers to either raise their offer quickly or lose the property. This is why many residential sales providers in Birmingham advise clients to move quickly through surveys, mortgage offers, and legal work to reach exchange as soon as practicable.
Once contracts have been exchanged and a deposit paid, gazumping cannot occur. At that stage, both parties are legally committed and the property is off the market. Understanding this distinction is important for anyone buying or selling a home.