Gazumping
Gazumping is when a buyer has an offer accepted by the seller but is then outbidded by a rival buyer before completion, resulting in the initial buyer losing the property and possibly money spent on legal fees/surveys too.
Gazumping could be considered to be a loop hole in the UK property process, unless you live in Scotland where they have introduced measures to protect their property buyers.
Why is gazumping possible?
Estate agents are obliged under the Estate Agency Act to pass all offers they receive to the vendor.
Other buyers could place a higher offer directly to the vendor, depending on the terms and conditions of the estate agents contract, and gazump the first buyer that way.
How can I reduce my chance of being gazumped?
If you have found your perfect home and REALLY do not want to lose it, consider offering the asking price and request that the property be removed from the market.
You can also take out insurance before you instruct your solicitor, so if you are gazumped, you can claim back any costs incurred.
Once your offer has been accepted, instruct your solicitor quickly so the sale progresses fast to reduce the chance of being gazumped.
And finally, if you can, be flexible with any issues raised regarding the property due to the surveys or lease details.