What is ‘gazumping’?

Gazumping

Gazumping occurs when a seller sells a property to someone else even though you had a verbal agreement with the vendor or the agent to buy the property at an agreed price. An agreement to buy or sell property is not legally binding until you have exchanged a contract and paid a deposit (paying a deposit alone is not sufficient).

If you paid a ‘deposit’ to the vendor or the vendor’s agent, then this should be refunded to you if you are gazumped. Otherwise, you are generally not entitled to any compensation for any money you may have spent on the transaction, for example to pay for legal advice, inspection reports or loan applications.