Gazumping fraud or within the law?

The enormity acquires the phenomenon of the “gazumping” in the property market in the UK. “Gazumping” is a repurchase of the property by the client, giving a higher price for the object, at a time when one customer is already in the deal, sent the seller a offer and made an advance. According to British laws, even the prepayment does not give the buyer a 100% guarantee that any property will belong to him.

This behavior of the seller certainly seems unfair, however, is not a banned technique. A buyer who refused to purchase, looks like the injured party in the transaction. He spent time watching, often ordered evaluation or examination , negotiating mortgages. And of course, the buyer who has the deal fell through, experiencing moral suffering.

The term “gazumping” came into use in the late 1980s. Presumably, it is derived from Yiddish, and means “fraud, deception”.

The phenomenon of gazumping tends to manifest itself in a growing market in terms of housing shortage, when on one object have several buyers and the conditions are dictated by the seller. It is strange that the legislators of England has found ways to protect against this phenomenon. A reliable mechanism of protection against gazumping applies in Scotland. There is a proposal (offer) submitted by the buyer, notarized the seller can not prnate another offer.

Among the UK cities of Brighton is leading in the cases of gazumping. According to a study by online estate Agency eMoov, in Brighton, about 34.9% of the buyers have been the victim of gazumping.

Brighton surpassed even in London, where approximately 31.9 percent buyers become a victim of gazumping. In General, UK is approximately 22% of buyers have experienced this phenomenon myself.

Gazumping nurtured and encouraged primarily by the estate agents who are motivated by the interest to obtain the largest possible fee.

Research property portal eMoov showed that the more expensive the property, the higher the probability that the buyer will fall into the trap of gazumping.

The most common phenomenon of gazumping when buying and selling real estate is more expensive than £500000, he is exposed to approximately 27% of sales in this range. The price range is cheaper the £200,000 gazumping phenomenon occurs approximately in 6 % of cases.

If you send a proposal and realize that there is a risk of becoming a victim of unscrupulous behavior of agents, take a simple thing: give the agent authority to sign off on your written proposal, thereby to confirm that he is acquainted with him. A notarized offer will greatly increase your chances, even if his obligation is not fixed by law.

® Maxim Savitsky 25.11.2014

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