Gazumped in Scotland?

Koalabear82

Hi everyone, looking some insight into what’s going on with a house I’m trying to buy. And sorry this is long! 

The property is in Scotland, it went on the market last Friday, I viewed the following day and made a verbal/informal offer above asking price at 9am on the Monday. I asked for a decision that day as I had other properties I was interested in. The ea got back to my early afternoon saying that the seller wanted to go ahead with the viewings that were booked in that week before making a decision, fair enough. Then I got a call 2 hours later saying that seller had changed his mind and wanted to accept my offer. I was delighted and instructed solicitors straight away to make the formal offer, I also contacted my mortgage provider to begin my full application. 

My solicitor advised that they would need certified ID before they could make the offer formal so I made arrangements for my English solicitor (selling my current home) to send this to them. 

I emailed the ea to keep them in the loop and explain the situation with the ID. On the Wed I chased my Scottish solicitor to see what was going on, he said still waiting for my ID and would chase it up. I figured at this point that if the ea wanted an update they would contact my solicitors. They made no effort to contact me at all.

Skip to the Friday (yesterday) and my solicitor calls to tell me the ea is in receipt of another offer on the property, and they are giving us until this wed to submit my formal offer so the seller can consider both offers on the table. Im absolutely gutted. 

I really can’t fathom what’s going on. I thought gazumping was frowned upon on in Scotland? 

Cruncher8934

You offer isn't official until they receive ID, so it would be "gazumping" as such.

Nebulous2

That isn't gazumping. You don't have an offer on the table.

The only offer that counts in Scotland is a formal offer through a solicitor. At best you have what is called 'a noted interest.' People notify an interest through their solicitor, a closing date is set, and everyone with a noted interest gets the opportunity to bid, highest offer takes it. 

There are some variations on that - the second / third highest offer might get it if the first puts in onerous conditions, such as a lengthy entry date. 

Generally people aren't expected to offer in Scotland until they are in a position to make a binding offer. That includes finance, firm price and a firm entry date. 

Even though it has only been a few days you are at risk of being classed as a time waster. 

ProDave

Once a formal offer had been made and conditionally accepted, gazzumping is rare.

But because of the ID issue you never actually got as far as sumbitting that formal offer.

scottishblondie

You never made a formal offer, so this is not gazumping just normal procedure.  

user1977

Koalabear82 said:

I thought gazumping was frowned upon on in Scotland? 

It is. But the only actual prohibition is against solicitors facilitating it:

https://www.lawscot.org.uk/members/rules-and-guidance/rules-and-guidance/section-f/division-c/guidance/gazumping-gazundering-and-closing-dates/

i.e. if you wish to gazump/gazunder then you need to find a new solicitor, which is a fairly big deterrent.

So this only kicks in once solicitors are actually making (or have accepted) offers - you're still not at that stage.

Koalabear82

Ok thanks everyone. That’s makes more sense. Guess I’ve been too quick off the mark with instructing mortgage company! 

comeandgo

Your solicitor is your friend.  Be guided by them, you don’t have the property until they say so.

Nebulous2

Koalabear82 said:

Ok thanks everyone. That’s makes more sense. Guess I’ve been too quick off the mark with instructing mortgage company! 

The problem you have is a culture clash. You have come to it with certain expectations from your previous experience. The people you have met have a whole different set of expectations that you were not prepared for and couldn't meet. 

We sold in Scotland in February. House went on sale on Tuesday. By Wednesday evening we had 3 noted interests and one formal offer. Solicitor suggested a closing date of Friday. We asked him to make it lunchtime on Tuesday. We had 6 more viewings over the weekend. On the Tuesday we had 5 formal offers. Two were practically the same and we chose the one whose solicitor assured ours they could move quickly. Entry date was 6 weeks after closing date. 

You wouldn't have been in the game, as you weren't ready.

It's a learning experience however, you now know what it will take.....

sheramber

You should at least have a mortgage in principal before you offer.

Sales can complete in 4 weeks in Scotland. You state your entry date when you offer. It is normally ' as mutually agreed' but , if the seller requires a specific entry date then the person who can meet that date will be successful.

I sold and bought recently. My EA would not consider a viewing to anyone who did not have MIP , at least.

My buyer wanted in in 4 weeks to coincide with his rental contract finishing.

I agreed to move out to stay with my son until I found a house. 

As it was , I found one a week after accepting the offer. The seller needed completion in 4 weeks, as he had that entry date for the house he was buying. 

My offer was successful because  my entry date was flexible. 

Koalabear82

Thanks for the insight.

Given what everyone has said I’m a bit confused as to why the ea advised me my verbal offer was accepted. Would have been better if they had said my offer would be considered when submitted formally, but as you say lesson learned!