I have just been reading about gazumping
Gazumping is nothing to get too excited about - there are ways to avoid this happening. I've posted this elsewhere, but I'll repost here for your edification
.
There are 2 ways to purchase property in NSW (excluding auctions, which are pretty much the same everywhere):
Way 1
1. Sign a contract in the REA's office & pay 0.25% deposit. 5 business day cooling off period begins.
2. Do pest, building, finance approval within 5 days. Seek, but don't necessarily gain, an extension of time if there are hold ups getting this done (quite common at the moment).
3. All good? do nothing - day 6, pay up the balance of 10% i.e. 9.75% and contracts are formally exchanged by default
4. All not good? i.e. termites found and you want to pull out. Rescind the contract and forfeit the 0.25% deposit to the vendor
5. If contract not rescinded, then settlement in 42 days later (typically)
Way 2
1. Make a written or verbal offer. Written offer has clause such as "finance approval, building and pest, settlement period", verbal the same.
2. If the vendor accepts the offer (written or verbal), finance approval, building and pest inspections are initiated
3. Vendor's solicitor issues contract to your (purchaser's solicitor)
4. All good? Sign contracts, pay 10% deposit. NO cooling off period applies. You sign a 66W form along with your solicitor, that you acknowledge that no cooling off period applies.
5. Contracts are exchanged
6. Settlement in 42 days later (typically)
Only under Way 2 are you open to being gazumped. This can happen at any point up until points 4. & 5. i.e. the other purchaser could buy the property before contracts are exchanged and you would miss out.
So its not all bad here
