From the gazump to the gazunder

The practice, known as gazundering, is typically associated with the housing market in England, where double-dealing and skulduggery are endemic.

But estate agents and solicitors north of the Border are increasingly reporting examples where buyers have forced the seller into reducing the purchase price at the last minute.

In the worst cases, sellers are left to accept tens of thousands of pounds less than they expected for their home. In other instances they have had to re-advertise their property.

A survey by the Clydesdale Bank has found that almost 20 per cent of Scottish buyers would consider using dirty tricks if it saved them money on buying a house.

The bank’s report comes just a few months after The Scotsman reported that gazumping - where a vendor pulls out of an deal because they have received a higher offer from a third party - had arrived.

Now it appears Scotland is surreptitiously being infected with the gazundering virus. And there is nothing in the legal framework to stop it.

Several agents contacted by The Scotsman said gazundering is a worrying practice.

John Coleman, a partner with estate agents Knight Frank, said: "I think it is on the rise and we have to be careful to prevent it getting it out of hand.

"Knight Frank has experienced at least two instances [of gazundering] in the last three or four months.

"Two years ago we would not even have dreamt of it. And if it’s happening to us, it will be happening to others.

"Until now we have been able to keep our system pretty honourable but there are signs that buyers and sellers are becoming much more commercial. People are moving up from the south who are trying to bring their understanding of how their property market works to ours.

"I am concerned it could break down the fabric of our system."

In Scotland, the majority of properties are sold using the "offers over" system. Typically, a property will go to a closing date and the highest offer will be accepted.

It is the period between the offer being accepted and the written contract - known as the missives - being concluded that gives the gazunderer opportunity for sharp practice.

Many Scottish housebuyers believe that once an offer has been verbally accepted, the contract is binding. But the Law Society of Scotland has confirmed that a contract is only binding when the missives have been signed.

Peter Jordan was selling a 200,000 three-bedroomed property in Newton Mearns last year when he became a victim.

"We had ten offers, but one was 10,000 higher than the second. Obviously we accepted the top offer," he said.

"But two weeks later, and after the property had been taken off the market, they called my lawyer and said they were beginning to think they had offered too much.

"They eventually reduced their offer by 9,500 to just 500 more than the second bid.

"We were very annoyed but the dilemma was: do we accept this, or go through the hassle of trying to contact those people who missed out? Or start from scratch and put it back on the market?

"Eventually we just accepted the offer. The gazundering tactic worked."

Gazundering tends to occur mainly in property hotspots, where a large number of buyers are competing for a small pool of stock.

With homes going for between 20 and 50 per cent over the asking price, buyers can be tempted to bid large amounts in a desperate attempt to secure a property. But once the bid has been accepted verbally and the property has been taken off the market, the buyer is in a stronger position to renegotiate.

Jamie Macnab, of estate agents FPDSavills, said: "The Scottish system is not as good as everyone makes out, and is probably no better or worse than the English system.

"We need to find a way of concluding missives more quickly. I have had cases where the missives are open for two to three months. In such cases the window of opportunity to behave cynically or for a genuine change of circumstances is wide open."

Mr Coleman added: "I know that we as a firm are trying to put in place measures to prevent it happening."