What Is Gazumping?

Gazumping occurs when a seller accepts a higher offer from a new buyer after already accepting an offer from another buyer — but before contracts have been exchanged. Because neither party is legally committed until exchange, this is technically legal in England and Wales. The original buyer loses the sale and may have incurred costs — survey fees, solicitor fees, mortgage arrangement fees — that they cannot recover.

When Does It Happen?

Gazumping is most common in rising markets where demand is strong and properties are attracting multiple interested buyers. When a property is under offer but not yet exchanged, other buyers may approach the agent with higher offers. In a competitive market, the temptation for sellers to accept a better offer can be significant.

Is It Legal?

Yes — in England and Wales, gazumping is legal. There is no binding contract until exchange, and sellers are free to accept a higher offer at any point before that. This is a fundamental feature of the English and Welsh conveyancing system and has been the subject of debate and proposed reform for many years. Scotland operates differently — the offer and acceptance process creates a binding contract earlier in the process.

The Ethical Dimension

While gazumping is legal, it is widely regarded as poor practice. A seller who accepts an offer and then accepts a higher one from another buyer causes real financial and emotional harm to the original buyer. Many sellers choose not to gazump even when they could, because they value their integrity and recognise the distress it causes. Estate agents are also required to pass on all offers to sellers — they cannot simply refuse to present a higher offer.

How Sellers Can Avoid Being in This Position

Sellers who want to avoid the ethical complications of gazumping can take steps to reduce the likelihood of receiving competing offers after acceptance:

• Take the property off the market promptly after accepting an offer
• Communicate clearly to your agent that you do not wish to receive further offers
• Move quickly through the conveyancing process to reach exchange as soon as possible
• Consider a lock-out agreement with the buyer — though these are rare and have limited enforceability

What Buyers Can Do

Buyers who want to protect themselves from gazumping can ask the seller to take the property off the market as a condition of their offer, move quickly to instruct a solicitor and progress the transaction, and consider whether a lock-out agreement is appropriate. Ultimately, the best protection against gazumping is speed — the faster the transaction reaches exchange, the shorter the window of risk.