What is 'gazanging'? Everything you need to know as the Government launches probe to simplify the house-buying process

New laws could be introduced to make it harder for property buyers and sellers to pull out of the house-buying process in the months between offer and exchange
Lizzie Rivera29 October 2017

The government has begun its probe into the often-stressful property-buying process.

It is calling for evidence from estate agents, solicitors and mortgage lenders over the next eight weeks in an attempt to make buying a home "cheaper, faster and less stressful".

The existing conveyancing process leaves sellers vulnerable to 'gazundering', a term used when a property buyer lowers their offer just as contracts are about to be exchanged.

Buyers also need to be aware of 'gazumping', which occurs when keen buyers who have already put down an offer on a property are outbid by rival buyers.

'Gazanging' is also something to watch out for, according to In-deed conveyancers, especially in an uncertain property market.

WHAT IS GAZANGING?

Gazanging is when sellers change their minds and decide to 'hang tight' - taking their property off the market part way through the sales process.

In England and Wales, even though an offer has been accepted, a house purchase is not legally binding until contracts have been exchanged.

WHEN DOES GAZANGING OCCUR?

Gazanging is common when a seller can't find another house they want to buy and decides to stay put instead.

It can occur if a seller gets 'cold-feet' due to concerns about the property market.

A small percentage of 'gazangers' have also admitted to pulling out of the process because they are 'fed-up' with delays and complications.

For a variety of reasons, about 25 per cent of house sales fall through between offer and exchange - costing want-to-be buyers an estimated £1 billion in surveys and legal fees.

The exchange of contracts doesn't happen until all paperwork is in order: the survey has taken place, the mortgage arranged, searches conducted and legal documents completed.

This generally takes three months, depending on the number of people in the chain, how long it takes to have a survey done and how fast (or slow) the solicitor is.