Gazumping
A complete guide to what "Gazumping" means in real estate and how it applies to property transactions in India.
Definition
Gazumping occurs when a seller accepts a higher offer from a new buyer after already accepting an earlier offer from another buyer, effectively outbidding the original buyer. It typically happens before contracts are formally exchanged.
Use of Gazumping in Real Estate
While gazumping is not illegal in India, it is considered unethical and can lead to financial loss for the original buyer who may have already incurred legal and inspection costs. To protect against gazumping, buyers should move quickly from agreement to registration and ensure the agreement of sale includes penalty clauses for the seller backing out.
Key Takeaway
Understanding "Gazumping" is essential for making informed real estate decisions. Always consult a qualified professional for advice specific to your situation.
Disclaimer: This glossary is for educational purposes only and does not constitute legal or financial advice. Definitions may not reflect the most current regulatory changes. Please consult a qualified professional for guidance specific to your transaction.