When you see something you like, whether it’s a pair of shoes, new headphones or a karaoke machine (for the wannabe Mariah’s) you can be pretty sure you are going to get it. The purchase can be instant, allowing it to be in some cases impulsive. When it comes to buying a home, the process is not so fast. Even with speedy conveyancers like Waterstone Legal by your side. To an extent this is a good thing as it protects your interests. However it can make you feel vulnerable on the journey from offer agreed to completion. One question and concern for many buyers is whether the seller will change their mind (gazumping).
In this blog we look at whether they can do this legally, up to what point and how you can reduce the chances of it happening. Let’s dive in.
Can a Seller Legally Pull Out of a Sale After Accepting an Offer?
In the UK, the answer to this question is yes. Despite the disappointment this can cause you, when you buy a property a seller can pull out right up to the exchange of contracts. This gives them the right to change their mind for a number of reasons we will consider in a moment. As a buyer if a seller pulled out of right up to the moment before exchanging contracts you can not take legal action. If you can not change their mind, you will have to start looking for another property.
Possible Reasons Of Gazumping
There are a number of reasons a seller may pull out of a sale.
The first and most common is a practice known as ‘gazumping’. This is where a seller accepts a higher price from another buyer after the sale is agreed. Not ideal, or very nice when you think you have found the dream home. The situation is the one many buyers find themselves in. In 2024 over 50% of buyers in Greater London reported losing homes due to being gazumped. The amount of sales affected by gazumping varies from year to year depending on market conditions and the area.
Another reason a seller may change their mind is a change in market conditions. If they feel the market will be stronger next year they may delay the sale in the hope of getting a higher price. If your survey comes back and down values the property, they may decide to do refurbishments to increase its value before going back to the market.
Finally, there could be personal reasons that they decide to pull the plug. Whether a sale has fallen through on a home they intended to move into, a change in financial circumstances of even family reasons.
Buying a home can be a rollercoaster. We can help you feel more certain and secure in your purchase. Here are some things you can do to reach the exchange of contracts as quickly as possible so you can finally breathe.
Also read: Your go to glossary for conveyancing
How Can You Help Secure The Sale?
No buyer wants to lose the property they have their heart set on. While there is no guarantee till exchange of contracts, there are ways you can help secure the sale from the beginning. And avoiding any chances of gazumping. Notepads at the ready…
Have a Conveyancer Ready To Instruct
As soon as an offer is accepted you want to give the seller confidence you are proceeding with gusto. Having a fast, efficient conveyancer like us can give them that confidence. We will crack straight on with issuing contracts and starting legal searches to get things moving.
Be Prepared With Finances
A seller may go with another buyer simply because they can move faster. If time is of the essence (which it often is) this can sway them towards a higher offer leaving you gazumped. Having your mortgage approved is key. If it makes sense for your circumstances a bridging loan can sometimes help secure the purchase. Speaking to experienced lenders helps you know your options, be strategic and prepared to move fast if necessary.
Keep Communicating
Staying in the loop with your estate agent, lenders and conveyancer from start to finish allows you to keep the sale moving. Responding to any requests for information and being proactive in gathering documents can help move things along. Many sales fall through from a lack of communication. Simply keeping everyone up to date can make a big difference in the race to exchange.
How Can Your Conveyancer Help Exchange Quickly?
Choosing the right conveyancer can play a big part on how quickly you exchange contracts. You want to ensure your property solicitor issues contracts within 24 hours and communicates with all parties involved. We prioritise keeping everyone up to date at every stage of the transaction via our online property portal. To achieve completion by a set date we offer a fast-track service. For a small extra fee that can make sure you are over the line and picking up the keys as quickly as possible.
The Final Word
In the UK a seller can legally change their mind right up to exchange of contracts. Their reasons can be personal with gazumping being one of the most common. This is where a seller accepts a higher offer from another buyer. To protect yourself and speed up the sale to reach the exchange of contracts swiftly there are a number of things you can do. These include having a fast, efficient conveyancer ready to instruct, preparing your finances and communicating regularly with all parties. Some law firms like us provide a fast-track service for an even quicker completion. If you have started your property search it is never too soon to get a conveyancing quote and speak to lenders.
We will do all we can to make sure it will be your home sweet home in no time,
