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If you’ve been gazumped, first confirm with the agent whether the contract was signed. Then contact your conveyancer for legal advice. You may choose to submit a revised offer, but do so cautiously. To avoid gazumping in the future, act quickly, get finance pre-approved, and work with a proactive conveyancer.
What is Gazumping?
Gazumping occurs when a vendor verbally accepts your offer to purchase a property but later sells the property to another buyer who offers a higher price or more favourable terms—before the contract is signed by both parties.
In Victoria, a property sale is not legally binding until both the buyer and the seller have signed the contract of sale. Until then, the vendor is legally entitled to accept another offer—even if you believe your offer had been accepted in good faith.
Is Gazumping Legal in Victoria?
Yes, gazumping is legal in Victoria. Unlike some other jurisdictions, there are no specific laws in Victoria that prevent a vendor from changing their mind or accepting a higher offer before a contract is signed by both parties.
This can be a harsh reality for buyers, particularly first-home buyers or those new to the market, who may assume that a verbal agreement is binding. Unfortunately, it’s not.
What Can You Do If You’ve Been Gazumped?
While the situation can be disappointing, here are some practical steps you can take:
1. Confirm the Details with the Agent
First, speak to the selling agent to clarify whether the vendor has indeed accepted another offer and if the contract has been signed. Occasionally, there may be a misunderstanding or premature communication.
2. Seek Legal Advice
Contact your conveyancer immediately. At Red Door Conveyancing, we can explain your position, confirm whether any legal obligations exist, and help you understand your options—including the likelihood of proceeding or the need to walk away.
3. Negotiate or Increase Your Offer (Cautiously)
If you’re still interested in the property, you can choose to submit a revised offer. However, this may put you in a bidding war. Make sure any increase in price or revised terms still aligns with your budget and the property’s value.
4. Request the Vendor to Sign Quickly Next Time
To reduce the risk of gazumping in future transactions, consider including a condition that the vendor signs the contract within a specific timeframe—or offer to sign the contract yourself immediately, with a cheque or transfer for the deposit ready.
How to Avoid Being Gazumped in the Future
While you can’t eliminate the risk completely, there are several strategies to reduce your chances of being gazumped:
- Act Quickly: Once your offer is accepted, arrange to sign the contract and pay the deposit as soon as possible.
- Request Written Acknowledgement: Although not binding, a written statement of the vendor’s intention can provide some reassurance.
- Be Prepared: Have your finances pre-approved, engage a conveyancer early, and have building and pest inspections ready to go.
- Use a Skilled Conveyancer: At Red Door Conveyancing, we liaise directly with the agent and vendor’s solicitor to move things forward quickly and protect your interests.
Being gazumped is deeply frustrating, especially when you’ve emotionally invested in a property. While it’s legal in Victoria, there are practical steps you can take to minimise your risk and respond effectively.
Most importantly, working with an experienced conveyancer can make all the difference.
At Red Door Conveyancing, we’re committed to giving buyers confidence throughout the property journey. If you’ve been gazumped, or want to avoid it in the future, get in touch with our team for reliable, proactive support. Give us a call on 03 8456 6797.
