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In a recovering and rising market, the word gazumping starts appearing in the press to replace gazundering as journalists try to find more bad news to help them sell column inches but; what doe these terms really mean, is it always accurately applied and who is at ‘fault’ when it happens.
Firstly, the Law.
Under the 1979 Estate Agents Act, estate agents are legally obliged to put forward all offers to the customer (also referred to as the seller, client or vendor) up to, but not after, unconditional exchange of contracts. Not putting forward an offer is unlawful and could mean the agent ends up being severely fined and, or banned. The only exception to this law is if the agent has a letter written by the customer saying that no further offers should be submitted or, that offers under a certain figure should not be submitted.
The Law also requires that the agent works on behalf of the customer and acts in the customers, not the agents’ best interest. This means giving best advice and attempting to create a situation where the customer is given one or more offers and can choose which is the best (note, not necessarily highest) offer to accept. Ultimately, it is the customers’ choice which offer to accept and what instructions they give the estate agent on how to act. The agent MUST comply with any and all requests by the owner that falls within the law and the terms of the agreed contract. In short, if the agent asks you to increase your offer because a higher one has been received or, tells you that your offer has been rejected because someone else has offered a higher price or a quicker sale, he or she is simply following their clients instructions and complying with the law.
Always remember, as agents, we work for the customer, and the customer is the seller, NOT the buyer.
So what is gazumping?
Most people regard gazumping as a higher offer being accepted by a seller once a sale to someone else has already been agreed. What it is NOT, is the bidding/ negotiating process that goes on before a sale is agreed when two or more people are bidding for the same property.
Good agents are always happy to provide advice and at PDQ, we also insist that anyone who advises you holds at least one qualification in estate agency and meet our high standards before they are allowed to deal with the sale/ purchase of the biggest asset most people posses. Also remember that as agents our legal and contractual priority is to the sellers however, ALL estate agents have a duty of care to buyers. If in doubt, give us a call, we are always happy to help. Good luck! Chris Wood (01326) 561561 Facebookfollow me on twitter
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