Gazumping Laws Is A Freightenting Situation And Shouldn't Happen!

Basically,  years ago you could  purchase a property for an agreed price of say $350,000, pay your holding deposit and then  the Real Estate/Home Owner gets a better offer of say $320,000 accepts that offer and refuses your offer of $300,000, refunds your money. 

Unless you have extra money to purchase towards and raise your bid the sale will through to the new owner, you would be refunded your holding deposit and this was on the basis that contracts were not signed. The better market value offered and 'Sold to the Highest Bidder, even after they agreed to a previous lower bidder's price. Once the 10 per cent deposit is paid and contracts are exchanged, this secures the price - not the holding deposit

The laws should change, so a buyer is not disadvantaged to  a possible gazumping dealing. The neither parties are compensated in  NSW for  any hardship caused. The backflip for for the seller could that  the highest bidders accepted price  may not be full funded to exchange contracts and then the  Real Estate Agent  is stuck  placing property on the market again.

A Suggestion is,'Once a holding deposit is paid a "Preliminary Contract of Sale Document" - should be signed by all parties concerned accepting the sale price, maximum time frame for settlement and confirming any further offers to be  supplied in writing. This will be provided prior to exchange of contract from the Agent/Seller.

The bonus on Auctions is Gazumping can not occur after Sale.

NSW Gazumping Laws