Can I be gazumped if I leave a holding deposit with the agent for a property I want to buy?
In principle, yes, because the property remains ‘on the market’ (i.e., available for sale) until a contract for its sale is made. A seller may agree to take the property off the market for a short period after you pay a holding deposit, to give you enough time to complete the things that are necessary before you exchange contracts. However, the seller is not prevented from selling the property to someone else if he chooses to. If you are buying a residential property, you can exchange contracts and have a ‘cooling off’ period of 5 business days, during which you can complete the necessary checks and decide whether or not to proceed with the purchase. This prevents the seller from selling the property to anyone else. However, if you decide not to proceed, then you must pay the seller 0.25% of the agreed price.
