Gazumping : How common is it ? What kind of person does it ?

[Jeffrey Shaw 90]

Why should an alternative system (amongst whose aims would be to minimise Gazumping) be "much more expensive".

I have to say I think the whole house buying and selling thing in this country is a complete joke. What other sphere of human activity (private or business) is so much stress and money [not only for the house but for any searches and surveys] all dependent just on someones word, a word which the more unscrupulous and/or unreliable amongst us can just withdraw at any time at no cost to themselves ?

Alternative view: conveyancing is a very cost-effective and reliable system of handling gigantic assets at minimum risk. Conveyancing fees are nowadays smaller in real terms than they've ever been: unlike EA fees, which aren't!

[Justin Smith 10]

I'm fairly sure it's a simply legalised racketeering, from the councils charges for searches that are sodding electronic, through to estate agents, mortgage companies and conveyancers. The problem is that that is a lot of people to **** off, so there is little incentive to change the system for the better and the gravy train would come to an end.

 

There just must be a better way without either side losing out, minimising both sides costs and speeding it all up. Ultimately a house isn't much different to a car in many ways, yet I can walk into a dealership and walk out with a shiny new car in under an hour...not saying we should do to such extremes for a house mind you but why shouldn't this be possible in a legal and safe manner?

 

Currently you get more sales protection for a Mars bar than you do a house and that's frankly ridiculous. How about the house MUST be advertised with all searches and known issues out in the open? If the vendor tries to cover a known issue then they are legally liable under the Sale of Goods act for example (or similar for houses). Encourages more honestly upfront, mortgage companies know they are covered in case of issues so won't require a blooming coal search etc...

 

I agree with this. But didn`t the last government try to introduce sellers packs, just this kind of thing in fact. They were supported by Which? and a few other consumer bodies, but as far as I know the whole system got so watered down that it was almost useless.

Estate Agents didn`t like the sellers packs because they thought it`d discourage people from selling their house. But that`s rubbish, it`d only put off those who really aren`t they serious about selling their house ! This is a classic example : We bid on a house recently, we were the only bidders (the house was over priced, everyone said so ! ) but despite this we only bid about 5% below the asking price. Our offer was refused and the house taken off the market about a month later. One has to question how serious that vendor was in the first place, and if they`d have had to pay for a sellers pack and it discouraged them from putting it on the market why would that be a bad thing ? ! ?

 

---------- Post added 11-09-2015 at 23:25 ----------

 

Alternative view: conveyancing is a very cost-effective and reliable system of handling gigantic assets at minimum risk. Conveyancing fees are nowadays smaller in real terms than they've ever been: unlike EA fees, which aren't!

 

How does that contradict what I said about the whole process is a complete joke ? Hundreds of thousands of pounds in total and thousands of pounds in fees (and much stress) all dependent on the word of someone who can change their mind at any time at no cost to themselves ?

Edited September 11, 2015 by Justin Smith

[Cyclone 10]

 

Currently you get more sales protection for a Mars bar than you do a house and that's frankly ridiculous. How about the house MUST be advertised with all searches and known issues out in the open? If the vendor tries to cover a known issue then they are legally liable under the Sale of Goods act for example (or similar for houses). Encourages more honestly upfront, mortgage companies know they are covered in case of issues so won't require a blooming coal search etc...

 

SoGA doesn't apply to private sales at all, nor would a lot of the legal protection you're talking about. You buy privately, you get what you see so long as there's no misrepresentation.

Buying a new house from a house builder is different, it comes with a warranty basically, as you'd expect if you're buying from the manufacturer.

 

The system with regards to searches could certainly be improved, and surveys could be turned upside down by having all surveys published as a matter of public record, perhaps even moving the responsibility onto the vendor to have the survey done (this would have to be carefully controlled because the vendor has a reason to instruct the surveyor to hide things).

 

My parents have been selling a house for months, that's months since they accepted an offer, vacant possession, no mortgage.

Once a week the other sides solicitors think of 1 extra thing to ask, by post. Like "have you got planning permission for the boiler that was changed".

The answer to which is "changing a boiler never needs planning permission, what the hell are you talking about?"

Then it's a week before they come up with another random question.

Time wasting idiots.

[Jeffrey Shaw 90]

The system with regards to searches could certainly be improved

It is being! The Local Authority statutory search system (LLC1) is in the process of being transferred to HM Land Registry. The handover will be on a rolling Council-by-Council basis.

[Eric Arthur 10]

SoGA doesn't apply to private sales at all, nor would a lot of the legal protection you're talking about. You buy privately, you get what you see so long as there's no misrepresentation.

Buying a new house from a house builder is different, it comes with a warranty basically, as you'd expect if you're buying from the manufacturer.

 

The system with regards to searches could certainly be improved, and surveys could be turned upside down by having all surveys published as a matter of public record, perhaps even moving the responsibility onto the vendor to have the survey done (this would have to be carefully controlled because the vendor has a reason to instruct the surveyor to hide things).

 

My parents have been selling a house for months, that's months since they accepted an offer, vacant possession, no mortgage.

Once a week the other sides solicitors think of 1 extra thing to ask, by post. Like "have you got planning permission for the boiler that was changed".

The answer to which is "changing a boiler never needs planning permission, what the hell are you talking about?"

Then it's a week before they come up with another random question.

Time wasting idiots.

 

Why didn't your parents say "great, thanks for your offer, we've accepted it, please exchange within ten days ".

[Cyclone 10]

Perhaps they did. What would you suggest someone does when the 10 day limit is reached and no exchange is even close to being possible?

 

If you pulled out of the sale, then you'd never sell the house, as conveyancing takes longer than 10 days, and nobody will be ready to exchange that quickly.

[Justin Smith 10]

Unless the buyer has good reasons* to pull out (or try to get the price down) then I have the same negative view of them as I have of gazumpers. At the end of the day, to me, a man/woman`s word should be their bond, if they`re honourable.

 

* Like a poor survey which reveals significant problems with the structure of the house. The only other acceptable excuse (apart from death - or bad health problems - obviously......) would be if the buyer cannot raise the money, though that would be a failing on the part of the estate agent to adequately check that the buyer has the funds.

 

Just to emphasise, the only survey problems which should be an excuse for pulling out of a sale (or trying to get a discount) are serious structural issues. Not, for example, a survey reporting that the fuse box or boiler doesn`t conform to "current regulations". That last phrase really is a cynics dream. Take PAT testing, the biggest money making con ever, what a waste of money. I mean is it really necessary to have a plastic double insulated product (most double insulated products are made of plastic) flash tested ? I have to say I really don`t think it is. I once repaired a TV which had been PAT tested, they hadn`t even checked the plug, the terminal screws were actually loose ! ! You`d have to be exceptionally uncky to ever die from a 240V mains shock, but an arcing plug is actually a fire risk.......

If the buyers want to cross all the "t"s and dot all the "i"s then fine that`s up to them, but they buy the property for the amount they originally offered, then have the work done when they own it. This doesn`t apply if it`s a brand new house, obviously, but then the buyer would just use the guarantee to have the work done.

Edited March 4, 2016 by Justin Smith