Gazanging
Encyclopedia
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.
Following the late-2000s financial crisis
, the British residential property market
became increasingly uncertain. In contrast to Scotland
and the United States
, the England and Wales
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
dates back to the Statute of Frauds
of 1677, and is intended to prevent dishonesty.
It can take as long as 3 months from acceptance of the offer for the Conveyancing
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.
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.
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
Gazumping
Gazumping is a term used in the UK and Australia when a seller accepts a verbal offer of the asking price from one potential buyer, but then accepts a higher offer from someone else. It can also refer to the seller raising the asking price at the last minute, after previously verbally agreeing to...
.
The term "gazanging" was originally coined by online conveyancing service In-Deed, following research among home buyers published in September 2011.
Following the late-2000s financial crisis
Late-2000s financial crisis
The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...
, the British residential property market
British residential property market
The affordability of housing in the United Kingdom deteriorated significantly from the late 1990s onwards, with house prices rising faster than earnings and the average age of first-time homebuyers increasing...
became increasingly uncertain. In contrast to Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the England and Wales
England and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
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
Law of Property (Miscellaneous Provisions) Act 1989
The Law of Property Act 1989 is a United Kingdom Act of Parliament, which lays down a number of important provisions for English property law....
s.2, requiring that a contract for the sale of land must be in writing. This precept of English law
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
dates back to the Statute of Frauds
Statute of frauds
The statute of frauds refers to the requirement that certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract....
of 1677, and is intended to prevent dishonesty.
It can take as long as 3 months from acceptance of the offer for the Conveyancing
Conveyancing
In law, conveyancing is the transfer of legal title of property from one person to another, or the granting of an encumbrance such as a mortgage or a lien....
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 & Gazundering
Gazumping and gazunderingGazundering
Gazundering is the practice of demanding a reduction in price to secure the sale of a property. This is usually done during contract negotiation...
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.