Gazumping….. The very word will make any buyer that has been a victim of this practice, shiver. This will be at the forefront of the Government’s new plan into making the buying process in the UK faster, cheaper and easier.
Running until 17th December, the government has asked anyone involved in the buying and selling process in the UK, including both members of the Public and Industry professionals, to come forward and complete a questionnaire on their experiences. It gives you the opportunity to raise any concerns or issues you have. You can complete the questionnaire here: Take part in the government’s consultation
If you are unsure of what Gazumping is, CLICK HERE to read one of our other blogs on the subject: Lets Talk About Gazumping.
The controversial and unpopular practice of Gazumping, which involves a seller accepting a higher offer from a new buyer when they have already accepted another, results in £270m being wasted on failed transactions each year, according to government estimates (zoopla.com) .
Over one million homes were bought and sold successfully in England and Wales last year, which is a really healthy figure, until you realise that 400,000 fell through.
Sometimes it can’t be helped, properties can fall through for a variety of different reasons and some are more costly than others, but it is up to your agent and solicitors to stop this from happening, but this isn’t always the case. Read our blog: Why Can It Go So Wrong Between Exchange And Completion to find out more. The government plans to cut this number down to make it easier for everyone.
The current issue lies with the fact that in the UK it can take many months for sales to complete. The Law Society’s Conveyancing Protocol lays out 70 steps and protocols before a sale completes – yet in Scotland it can be done within days.
It has also been mentioned that the conveyancing procedure may need an update. With buyers now having the ability to search for properties on their mobile phone and book viewings instantly, it has been said that the conveyancing processes such as local authority searches and land registry need to keep up – will it be possible to introduce new technology to create an e-conveyancing solution?
Just so you know, at Campbells, we do actually have a selling solution that can allow you to complete on a property sale from agreeing a price, in just 28 days: CLICK HERE
The government has been looking into the buying and selling process of other nations such as the US and Denmark.
There may be a situation where a “lock in” procedure is introduced, that will include a financial penalty if parties back out, to prevent Gazumping. This will provide reassurance to both buyers and sellers before exchange of contracts.
Do you think it is fair to implement a legal commitment to buyers and sellers at the point of making an offer, or do you think it will just put people off?
What do you think can be done to speed the process up?