October 18, 2012

Some Interesting Definitions in English Property Law

This post was written by: Aston Bond Law Firm

Gazundering – where a property is sold subject to contract and the buyer makes a new offer before contracts are exchanged to re-negotiate the price downwards at the last moment.

Gazumping – where a property is sold subject to contract and the seller who has already accepted one offer from a buyer, then goes on to accept a higher offer pushing out the first buyer who has spent money on surveys, legal costs and searches they cannot recoup.

Lock-Out Agreement – an agreement between a buyer and a seller granting the buyer exclusive rights to the sale of property for a certain period of time at a certain price.  However, this may involve a payment for the lock out agreement which the buyer may lose if they do not proceed to purchase before the end of the period.

Contract Race – Where a seller has received and accepted two or more offers on a property and will sell the property to the party who is ready to exchange contracts first.  Rules are set by the Law Society, governing such ‘races’.  One party can expend money on legal costs, searches and surveys without winning the race with no redress against the seller.

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