Gazumping and gazundering in the UK: why they are legal before exchange and how to protect yourself

The two words, defined

Neither word appears in the GOV.UK how-to-buy guide or in the statutes cited here. Payotte uses them in their everyday meaning. No official statistics on how often either happens were found, so none are given.

Why it is legal in England and Wales

The law requires a signed written contract. Under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, a contract for the sale of land “can only be made in writing”. It must contain all the agreed terms in one document or, “where contracts are exchanged”, in each copy, signed by or for each party. An accepted offer, a handshake or the estate agent’s memorandum of sale is not that contract.

GOV.UK spells out the consequences:

• “sold subject to contract (SSTC)” and “under offer” both mean the seller has accepted an offer “but they have yet to exchange contracts, so it is not legally binding”;
• “A verbal offer can be renegotiated at any time up to exchange”. This is what makes gazundering possible. GOV.UK advises renegotiating only “when a change is justified; for example if the home survey identifies significant issues”;
• once your offer is accepted, you can ask the agent to stop marketing the home and remove it from online portals, “although it is the seller’s choice whether to leave it on the market”.

After exchange, everything changes. GOV.UK says exchange is “an official legal commitment”. A buyer who withdraws may lose the deposit and have to pay compensation. A seller who withdraws “may be liable for your costs and even compensation”. See exchange and completion.

What estate agents must do, and what they may not do

The Estate Agents Act 1979, which extends to Northern Ireland, and the Estate Agents (Undesirable Practices) (No. 2) Order 1991 do not ban gazumping. They regulate how agents handle offers:

• Every offer must be passed on. It is an “undesirable practice” for an agent to fail to forward “promptly and in writing” accurate details of any offer received, conditional offers included. The only exception is a type of offer the seller has said in writing that they do not want to receive. GOV.UK puts it this way: “The estate agent is legally obliged to pass on all offers”. This means a higher offer made after yours reaches the seller.
• No invented bidders. Knowingly or recklessly misrepresenting “the existence of, or details relating to, any offer”, or the existence or status of another buyer, is also an undesirable practice. A fictitious rival offer used to push up your price is caught by this rule.

The seller “is not obliged to accept any offer, regardless of how much it is” (GOV.UK).

Northern Ireland

Northern Ireland follows the same pattern. nidirect says exchange of contracts “is the point where the sale is legally binding”, and that buyer and seller must then follow the contract “or face going to court”. The deposit is usually at least 5%. Before exchange, nidirect warns that, because most buyers are in a chain, the property you want “may fall through for reasons outside your control”. See buying a home in Northern Ireland.

Scotland: closing dates and missives

The Scottish process narrows the window but does not close it completely.

Section 1 of the Requirements of Writing (Scotland) Act 1995 requires a written document for a contract to transfer a real right in land. After conclusion, mygov.scot warns that a buyer who pulls out “will be liable to pay the seller thousands of pounds in damages”. Because missives usually conclude well before the date of entry, there is less time for a late, higher bid than in England. The Estate Agents Order quoted above also applies in Scotland. It mentions a buyer’s ability to “conclude a contract expeditiously in Scotland”. See buying a home in Scotland.

How buyers protect themselves

Costs already spent on a survey, searches or a mortgage arrangement are generally not recoverable from a seller who gazumps before exchange, unless an agreement says otherwise.

New builds: the New Homes Quality Code

The New Homes Quality Code applies to developers registered with the New Homes Quality Board. Version 2 covers homes reserved from 2 March 2026. Version 1 still applies to earlier reservations. For a home reserved under version 2:

• a formal, signed Reservation Agreement is required, stating the reservation fee, the price and how long it is valid;
• there is a cooling-off period of at least 14 days, during which the buyer can cancel “for any reason” and get the full reservation fee back;
• while the agreement is valid, the developer “does not have the right to cancel the reservation and must not enter into a new Reservation Agreement or sale agreement with another customer for the same new home”. This stops gazumping by the developer during the reservation;
• the agreement must state that the sale is still “subject to contract” (England, Wales and Northern Ireland). The buyer can still walk away, with deductions from the fee after the cooling-off period if the agreement allows them;
• the deadline for exchange (conclusion of missives in Scotland) must not be less than six weeks after reservation, unless the buyer asks for an earlier date.

The Code is a scheme that developers join, not an Act of Parliament. Check the developer is on the NHQB Register of Developers. See buying a new-build home.

What the law does not do (October 2026)

• No ban on gazumping or gazundering in England, Wales or Northern Ireland before exchange. Payotte found no statute that prohibits either.
• No compulsory compensation for a buyer who is gazumped, unless a signed agreement provides for it.
• No binding contracts yet. In its 18 June 2026 roadmap, the Ministry of Housing, Communities and Local Government said it will “introduce legislation, when parliamentary time allows, to require the use of binding conditional contracts”. These would make a sale binding much earlier, “for example once an offer is accepted”. It will only bring this into force “after sales packs are embedded”, which it describes as bringing the system “more in line with Scotland”. The roadmap expects most measures to apply in England, Wales and Northern Ireland, not in Scotland. Until legislation is passed, the present rules apply.

Which professional to consult

A conveyancer (a solicitor in Scotland) drafts or reviews a reservation or exclusivity agreement and moves the file to exchange or conclusion of missives. An estate agent must pass every offer to the seller. A mortgage adviser can get your lending agreed early, so you are ready to exchange.