Is there a name for this practise?

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This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of katy katy 3 years, 1 month ago.

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  • #57835
    Profile photo of Anonymous
    Anonymous
    Participant

    I was interested to read about a trick that Russian buyers are said to be pulling in the Canaries, whereby at the very last minute, in the notary’s office, they insist on a big price reduction or pull out.

    http://www.theleader.info/article/41142/the-russians-are-coming/

    Is there a name for this, like gazumping?

    The article states that deposits have sometimes been paid. Surely if a deposit has been paid (10pc is normal in Spain), and the buy side pulls out without good reason, they lose their deposit. Vendor can just bank the deposit and move on, maybe reduce the asking price by the value of the deposit.

  • #118566
    Profile photo of katy
    katy
    Spectator

    Yes it’s gazundering.

    As you say if they have paid 10% under a standard contract it could not happen. If the vendor pulls out legally they have to forfeit the deposit and pay another sum. The terms are called ARRAS.

    Just read the article, sounds like something he made up on the back of a fag packet 😆 😆

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