So. You've fallen in love with a house.

It couldn't be more perfect. It's close to some good schools, it has more bedrooms than you'll ever need and it boasts an original, period fireplace. You've always wanted an original, period fireplace.

You've put in an offer, which the seller has accepted – verbally. You've arranged conveyancing searches – all tickety-boo. The contract is drawn up and you're ready to go.

You're just about to pop the bubbly when your phone buzzes. An email.

What's this? The seller has accepted another, better offer? You thought you had this in the bag.

You've been gazumped. And, unfortunately, there's not a whole lot you can do about it.

Surely this can't be legal?

Gazumping is frowned upon. It constitutes a breach of a verbal agreement, so is considered rather unethical. But that doesn't stop it from being perfectly legal.

And, to make matters worse, it's all too common – in England and Wales, at least. A 2018 Emoov survey found that 25% of buyers had been gazumped the previous year. The practice disproportionately affected buyers in London (66%) and first-time buyers (58%). Ouch.

How can this be allowed to happen? Well, like many things in law, it all boils down to contracts. As far as the law is concerned, if there's no contract there's no agreement

That's why gazumping is only allowed when a verbal agreement is in place. As long as the seller hasn't signed on the line, they're free to accept any offers that come to the table.

And – let's face it – money is a powerful persuader.

Are estate agents allowed to let this happen?

Yes. In fact, estate agents in England and Wales are legally obligated to inform the seller of any offers, in writing.

It's easy to feel like you've been double-crossed if an estate agent allows gazumping to happen. But they're only doing their legal duty – they can't stop gazumping, even if they personally disagree with it. And besides, it's the seller's decision to gazump, not theirs.

That said, most reputable estate agents don't actively encourage gazumping.

What about Scotland?

Gazumping is technically legal in Scotland, too. But it's much, much rarer.

There are several reasons for this:

• Most Scottish estate agents are also solicitors. This means they're bound by the regulations of the Law Society of Scotland, which strongly advises against participating in gazumping.
• The Scottish property system moves faster. Once an offer is accepted, a contract tends to be drawn up quite quickly. Less time spent waiting for the gears of law to turn means fewer opportunities for gazumping.
• Cultural differences. For whatever reason, there's a sense that gazumping simply "isn't the done thing" in Scotland.

What is gazundering?

It's not just sellers who can turn to questionable tactics. Buyers can pull the rug out, too.

"Gazundering" happens when a buyer withdraws their offer and makes a new, lower offer instead.

It's risky, but it can work. If the seller is banking on a quick sale – because they're part of a chain, for instance – it can make sense to accept the lower offer to keep things moving. A seller might also accept to avoid the cost and hassle of relisting the property.

Like gazumping, gazundering is considered unethical but is perfectly legal.

How can I avoid being gazumped?

In any property sale, there's always the risk you'll be gazumped. But there are several things you can do to minimise this risk and maximise your chances of bagging that dream home.

1. Move quickly

As a buyer, your goal is to get to the contract stage as quickly as possible. Once the contracts are locked in, you're protected from gazumping. So move fast. Be a pest, if you have to.

2. Get a mortgage agreement in principle

If you're not a cash buyer, you'll want to lock in your mortgage as quickly as possible. Getting a mortgage agreement in principle is one of the best ways to avoid unnecessary delays.

3. Ask your solicitor to draw up a lock-out agreement

A lock-out agreement is basically a contract that precedes the contract. It gives you the exclusive right to purchase the property within a defined period. Of course, the seller has to agree to this – but it may be in their best interests to accept, especially if they want to sell quickly.

4. Ask the seller to take the property off the market

If a seller stops advertising their property, there's less chance of a gazumper knocking on their door. From a financial point of view, this puts the seller at a disadvantage, so you may have to sweeten the deal by offering something in return. For instance, you might offer to arrange a conveyancing survey in double-quick time.

5. Consider insurance

Home buyer protection insurance lets you recoup some of your costs if the seller changes their mind or accepts another offer. It won't protect you against gazumping, but it will soothe the burn.

I've been gazumped – what can I do?

You know what they say – if you can't beat them, join them.

If you've been gazumped, all you can do – pretty much – is gazump the gazumper. This means making a higher counteroffer and hoping that the seller comes whimpering back to your door.

Of course, not everyone has the budget to start a bidding war. And even if you do win the seller back, you're at risk of being gazumped again by a buyer with bigger pockets.

At Milners, our conveyancing solicitors pride themselves on their speed, efficiency and flexibility. We can't protect you from gazumping, but by moving quickly and dotting all our "i"s, we can help you snag a speedy sale and minimise your risk of being outbid.

Need conveyancing done fast? Get in touch to book a free, no-obligation consultation.