In England and Wales, a property sale isn't legally binding until exchange of contracts. That gap between agreeing a sale and exchanging creates room for two things buyers and sellers dread: gazumping and gazundering.

What is gazumping?

Gazumping happens when a seller accepts a higher offer from a new buyer after already verbally agreeing a sale with someone else. It's legal, if frustrating, right up until contracts are exchanged — because until then, neither side is bound.

What is gazundering?

Gazundering is the mirror image: a buyer lowers their offer, often shortly before exchange, knowing the seller may feel pressured to accept rather than restart the process. It's most common in slower or falling markets.

Neither is illegal in England and Wales, because neither side is legally committed until contracts are exchanged — however uncomfortable it feels.

Ways to reduce the risk

  • Move as quickly as reasonably possible toward exchange once a sale is agreed
  • Ask about a "lock-out agreement", a legal contract that stops the seller negotiating with other buyers for a set period
  • Keep communication open with the seller and agent throughout, so problems are visible early rather than as a surprise near exchange

Does this happen in Scotland too?

Less often — Scotland's system, where offers are typically legally binding once accepted, makes both gazumping and gazundering far less common than in England and Wales.

This guide is for general information only and does not constitute legal advice.