Gazundering threat to sellers can be avoided, says Law Society

7 May 2008

Homeowners can do more to avoid the growing risk of gazundering, says the Law Society.

Amid reports that 'gazundering' - the practice where a buyer suddenly drops their offer close to the exchange of contracts in the hope of getting a better deal - is on the increase, the Law Society is recommending that sellers and potential sellers do everything in their power to avoid being put in that position.

Law Society Vice President, Paul Marsh, says:

“Gazundering is not breaking any law. It is important that sellers go and see a solicitor very early on so that they can prepare all the paperwork before the property is marketed, so as soon as you've got a buyer you can send out the contract and reduce the time between an offer and the exchange. It is this delay which is exploited by gazunderers.”

“Establishing a rapport with your buyer helps to avoid the risk as well.”

“Very often people won't talk to the buyer direct, they do it through an estate agent, but if you can build up a relationship with the buyer they may be less willing to gazunder. The first thing sellers should do is get the buyer’s telephone number."

“You need to set a timeline for your buyer at the beginning of the process, tell them you expect to exchange within three or four weeks because your solicitor's got all the paperwork ready and you should be able to proceed very quickly.”

The Law Society points out sellers are entitled to speak to whoever they wish and that allowing estate agents to control the conversation between buyer and seller can slow the process down.

Paul Marsh adds: “Estate agents act on behalf of the seller, so if the seller wants to contact the buyer the agent must not stand in their way.”