Buying

Gazumping

Definition

When a seller accepts a higher offer from another buyer after already accepting yours but before exchange of contracts. Legal in England and Wales (but not Scotland, where the system is different). You lose any money spent on surveys, searches, and legal fees. Consider gazumping insurance or a lock-out agreement.

Why it matters

Gazumping can cost you £1,000–£3,000 in wasted survey, search, and legal fees. It's legal in England and Wales because a sale isn't binding until exchange of contracts. Knowing the risk helps you decide whether to pursue protection measures like a lock-out agreement or gazumping insurance.

Frequently asked questions

How can I protect myself from being gazumped?

Three options: (1) a lock-out agreement where the seller agrees not to accept other offers for a set period, (2) gazumping insurance (typically £30–£100, covers wasted costs), or (3) moving as fast as possible to exchange. Having your mortgage in principle, solicitor instructed, and survey booked before making an offer all help.