If you are facing legal problems, knowing how to access legal advice can make all the difference. We hope that this blog will provide you with an helpful source of information regarding the law and legal procedures used in court. The people who have crafted these articles are not legal experts. However, they do have a great deal of knowledge which has been gained by reading books about law, watching YouTube videos of famous cases, and communicating on online forums. The articles will look at criminal, commercial, and family law. Thank you for checking out this blog and reading what we have on offer.
Gazumping occurs when a seller accepts your offer to purchase a home but sells it to someone else who is ready to pay a higher price. While the practice is unethical, there is not much a gazumped buyer can do to reverse the situation. The excerpt below discusses how you can avoid gazumping as you purchase a property.
If you take too long to complete the deal, the seller might begin to consider other offers. For instance, take a situation where you need to sell your home before purchasing the new property. If you cannot find someone to buy your property, the seller will eventually sell it to someone else.
You must be well prepared before making an offer. Get your finances in order. For instance, you could opt for a bridging loan that allows you to purchase the new house before selling your old home. The conveyancer should organise the house inspection instantly and ask the seller to make renovations.
Ask the Seller to Remove Property Listings
Some sellers will list the property as 'active with contract'. It is a disclosure to interested buyers that the property has an offer. This might attract people who are willing to make a higher offer on the property. Overcome this by asking the seller to remove the property from major listings.
Protect Your Interests With the Contract of Sale
Your conveyancer should negotiate with the seller's solicitor to ensure the contract of sale restricts gazumping. For instance, a lockout agreement prevents the seller from accepting other offers within a specified period. Alternatively, the contract could compel the seller to refund your earnest money, refund conveyancing expenses and pay penalties (typically a small percentage of the asking price) if he or she sells the property to someone else.
A homebuyer insurance cover protects buyers from any financial loss they may incur as they buy a property. If you get gazumped, the cover will compensate the conveyancing fee, deposits, land search and property inspection costs.
Other than these measures, you must prove your seriousness to the seller. For example, you could show your mortgage pre-approval letter. Alternatively, you could take your family to visit the property once you make an offer. It shows you value the property.
Dishonest sellers and real estate agents could also gazump you. For instance, a seller delaying property inspections or negotiation meetings may be waiting for offers from other buyers.
Avoid gazumping by moving fast, asking the seller to delist the property, choosing a lockout agreement and taking an insurance cover. Talk to a conveyancing solicitor to learn more.Share