Gazumping is the term used when a property seller accepts one offer on their property, but afterwards accepts a better offer from someone else.
But if the seller is happy with both offers he may start a contract race. This is when a seller can accepted two or more offers on a property and the buyer who is ready to exchange contracts first, gets the property.
If a seller finds himself with multiple offers, they can instruct their conveyancer to send out draft contracts to all potential buyers.
This is a great option for owners keen to sell their property quickly and reduces the risk of “gazundering”, but it can be very frustrating for buyers.
How to win a contract race
Most conveyancers/solicitors will advise against buying a property in race. If you do choose to enter into a contract race, try and find a good conveyancing solicitor before hand. Contract races can be easily won providing you and your conveyancer are committed to the challenge. We have recommended conveyancers that are capable of handling a contract race quickly and efficiently, view our recommended conveyancers.
Warning for Buyers
If you lose the race, you’ll also lose any money spent on property searches, surveying costs and legal fees.
So if you’re going to make the effort of entering a contract race make sure that the seller’s conveyancer has specifically added a clause that says the contract will be exchanged to the buyer that completes the documents first. Otherwise, the seller can choose not to sell to you regardless of whether you’re ready first.
Warning for Sellers
Potential buyers might be put off by the idea of a contract race and the seller could be left with no buyer at all.