Record house prices, and a chronically poor supply of homes, are the perfect breeding conditions for gazumping to thrive
New legislation is required to outlaw the practice of gazumping, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“Today, there are media reports of a vendor backing out of agreements with seven home buyers, who were sale agreed and had paid their deposits. The homes in Mayo will now be sold to a single purchaser instead.
“This kind of despicable practice must end. Once deposits have been paid, and parties are sale agreed, there should be no facility for the vendor to renege on the agreements and accept a higher offer.
“At least one of the home buyers in Mayo is a renter who is faces eviction and must now face the process of starting from scratch to find a home to buy. The distress and anxiety this has caused is incredible.
“Gazumping is not just bad for home buyers, it is also bad for the property market. It can result in bidding wars that drive property inflation and instability in the market.
“Other countries have successfully introduced anti-gazumping contracts which mean that once a property is sale agreed, and a deposit has been paid, vendors cannot renege on the deal.
“We need to see the same thing introduced here – particularly given record house prices, and a chronically poor supply of homes, are the perfect breeding conditions for gazumping to thrive.”
March 24, 2023