term that describes the withdrawal of either party from a land sale
before exchange. It is the nature of real estate conveyancing
that there is no binding contract until exchange and therefore, it is
almost impossible to stop gazumping.
typical and reasonably common gazumping practice is when the agent
allows two or more buyers to enter into a new but higher agreement
with the vendor. The agent then tells the original intending buyers
that the price has gone up. They are then left to outbid new
intending buyers in a similar manner to an auction. In a falling
market, the opposite can occur; the seller is gazumped by a buyer.
There are controls in a number of states but in not NSW.