The controversial practice of gazumping is set to suffer an outright ban, if government gets its way. This will change the point at which house sales become finalized and in the hands of new owners. The move if successful will be in-line with the practice currently operating in Scotland. Gazumping is basically a practice whereby would-be buyers are out-bid at the last minute by another wannabe owner, this time with more money. The practice is thought to cause somewhere in the region 200,000 transactions to collapse each year.
Gazumping is a huge problem, for buyers, as many times these people will have gone through the expensive and arduous process of getting the property surveyed and paid for legal fees that can often cost within the region of 1000 pounds, only for their purchase to fall through at the last minute, leaving them out of pocket.
Last week the Department for Business Innovation and Skills (BIS) held meeting with the National Association of Estate Agents, in which it floated plans to put an end to Britain’s gazumping problem. In Scotland as in other European countries sales are made official at the point when an offer has been accepted by the seller, there is therefor no risk of money being lost. At present sales are only official when contracts have been signed.
The new crackdown is unsurprisingly unpopular with sellers, who run the risk of missing out on last minute bids of a larger sum. The changes would however rid buyers of the archaic system of selling nd bring about more security. It makes things more upfront and less risky. Of course, the new process will raise the questions of who pays for the upfront costs like surveys and legal fees a move that could put some sellers off marketing their homes all together. However the new laws will bring about a clarity and a fairness that has long been missing from certain aspects of the property market. It is in essence a re-balancing of power.
Waltham Estates, is a family run Estate Agents based in the heart of Walthamstow. We can sell or let your home in Leyton and Walthamstow, we offer guaranteed rent schemes, so you never have to worry about missing your mortgage payments, should you choose to rent your property.When it comes to Property management in walthamstow, we offer an all inclusive service. Find out more