What is gazundering and how do sellers avoid it?
Gazumping is when a seller accepts a higher offer after already agreeing a sale. Gazundering is when a buyer cuts their offer just before exchange. Both are legal in England and Wales until contracts are exchanged, so the best protection is a short, well prepared timetable and, where needed, an exclusivity agreement.
Read more in our guide: Portfolio sale timescales
Gazumping and gazundering compared
| Term | What happens |
|---|---|
| Gazumping | Seller accepts a higher offer from someone else |
| Gazundering | Buyer lowers their offer late in the process |
| Legal? | Yes, in England and Wales before exchange |
| Protection | Exclusivity or lock-out agreements, quick exchange |
| Scotland | Bargains become binding earlier, so both are rarer |
Why it happens
In England and Wales, an accepted offer is not binding. Either side can change terms or withdraw until exchange. In a rising market sellers are tempted to gazump; in a falling market, or after a survey, buyers gazunder. The longer the gap between offer and exchange, the more likely it is.
Gazundering in landlord sales
Landlords are more exposed to gazundering than gazumping. Buyers know a seller with tenants, a mortgage deadline or a tax plan may be under pressure, and some make a high offer to secure the deal and cut it shortly before exchange. Problems found during due diligence are the usual justification.
How to protect your sale
- Disclose known issues early so they are in the price, not a reason to cut it.
- Have a complete data room ready to shorten the time to exchange.
- Choose buyers with proven funds and a track record of completing.
- Use an exclusivity agreement with deadlines, set out in the heads of terms.
- Keep a second interested buyer warm where possible.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
Gazumping is when a seller accepts a higher offer after already agreeing a sale. Gazundering is when a buyer cuts their offer just before exchange. Both are legal in England and Wales until contracts are exchanged, so the best protection is a short, well prepared timetable and, where needed, an exclusivity agreement.
Generally no, because there is no binding contract before exchange. A lock-out agreement may give limited rights if it is properly drafted.
Agents must pass on all offers to the seller until exchange unless instructed otherwise in writing, so gazumping remains possible.
A deposit is paid at exchange, after which the price is fixed. Before that, it gives no protection.
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