What is “gazumping”, and does it still occur?
Gazumping occurs when a vendor refuses to formalise a firm agreement to sell to the purchaser at the last minute in order to accept a higher offer. It is not uncommon for a vendor to tell a purchaser that their offer will be accepted, and then to sell to someone else for a higher price. This can occur at real estate auctions as well (the auctioneer calls “sold”, but the vendor refuses to sign the contract and later sells to another person for a higher price). In Australia it is assumed that a purchaser understands that a sale has not taken place until the contract has been fully executed (signed by both parties), and that a purchaser who claims to have been “gazumped” has failed to understand the law as it applies to real estate sales. If you are gazumped, neither the agent nor the vendor is obliged to compensate you for any money you may have spent on legal advice, inspection reports, finance application costs or inquiries. However, your “expression of interest” payment (if you have p
