Gazanging is a term used in the UK to describe when a vendor pulls out of a property transaction and opts to stay put, having previously accepted an offer. Frequently, this occurs due to a change in circumstances, such that the seller no longer wishes to move, or are unable to. It has also been linked to a slowdown in housing market activity, which leads to an under-supply of property, giving the vendor less choice of properties to move to. The original buyer is left 'hanging'; hence the word gazanging, intended to echo the commonplace term gazumping. The term "gazanging" was originally coined by online conveyancing service In-Deed, following research among home buyers published in September 2011. After the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

, the British residential property market became increasingly uncertain. In contrast to

Scotland Scotland is a Countries of the United Kingdom, country that is part of the United Kingdom. It contains nearly one-third of the United Kingdom's land area, consisting of the northern part of the island of Great Britain and more than 790 adjac ...

and the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

, the

England and Wales England and Wales () is one of the Law of the United Kingdom#Legal jurisdictions, three legal jurisdictions of the United Kingdom. It covers the constituent countries England and Wales and was formed by the Laws in Wales Acts 1535 and 1542. Th ...

property market's volatility stems from the fact that a seller's acceptance of the buyer's offer is not legally binding until contracts are exchanged. This is a result of the Law of Property (Miscellaneous Provisions) Act 1989 s.2, requiring that a contract for the sale of land must be in writing. This precept of

English law English law is the common law list of national legal systems, legal system of England and Wales, comprising mainly English criminal law, criminal law and Civil law (common law), civil law, each branch having its own Courts of England and Wales, ...

dates back to the

Statute of Frauds The Statute of Frauds ( 29 Cha. 2. c. 3) (1677) is an act of the Parliament of England. In its original form it required that certain types of contracts, wills, and grants, and assignment or surrender of leases or interest in real property mu ...

of 1677, and is intended to prevent dishonesty. It can take as long as 3 months from acceptance of the offer for the

conveyancing In law, conveyancing is the transfer of legal title of real property from one person to another, or the granting of an encumbrance such as a mortgage or a lien. A typical conveyancing transaction has two major phases: the exchange of contract ...

to be completed, during which time the property market could increase in value sufficiently that the seller believes they could get a better price by pulling out and listing their property again, gazanging the buyer.

Gazumping and gazundering

Gazumping and

gazundering Gazumping occurs when a seller (especially of property) accepts a verbal offer (a promise to purchase) on the property from one potential buyer, but then accepts a higher offer from someone else. This can happen at any point before the sale is l ...

are related phenomena, describing specific cases where either the seller raises the price, or the buyer lowers their offer. In contrast, gazanging is not intended to improve either party's position to achieve a better deal. Instead, the seller pulls out of the sale entirely, leaving the buyer with no recourse whatsoever.

References

{{Reflist

External links

The Guardian, Gazumping and gazunderingPhil Spencer advice on gazanging, commissioned published by In-Deed online conveyancing
Housing in the United Kingdom English property law