Gazump

Q. When and why did the word 'gazump' come into our vocabulary

A. Also seen in earlier forms as gezoomph and gazumph, a number of sources suggest that this comes from the Yiddish gezumph, meaning to cheat or overcharge. This theory is supported by the word's first meaning in English back in the early part of the 20th century, when it meant to swindle, or as a noun, a swindle. It's a logical explanation, too.

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Q. What's its current meaning

A. Today it is only ever used in the context of buying houses, a meaning it acquired in the 1970s. It became familiar currency in the frenzied housing boom of the late 1980s and, to a lesser extent, in the last couple of years.

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To gazump is to raise the price of a property after a sale has been agreed - either because the vendor has had a better offer or just because they're trying it on - thus forcing the purchaser to drop out, match the new price or get into a bidding war with another purchaser who is willing to pay the higher price. It's astonishing that it is still legal practice, but it is in England and Wales. Scotland is more regulated, in that to a greater extent all parties are bound to an agreed price.

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Q. So, it's a product of the ludicrously convoluted system of house purchase in England and Wales, then

A. Typically it takes two to three months to exchange formal contracts on the sale of a house in England and Wales, but the process can drag on even longer. This gives the unscrupulous vendor - often with the encouragement of greedy estate agents after a bigger commission - ample opportunity to fish around for a better offer.

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In England and Wales nothing is binding until that final exchange of money is made and contracts signed, so it can mean that not only will the gazumped purchaser lose the property, but, in all likelihood, they will have spent several hundred pounds on surveys and legal fees. If the vendor pulls out at any time before the final exchange there is nothing anyone can legally do about it, and no compensation has to be paid.

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Q. And 'gazunder'

A blend of 'gazump' and 'under', to gazunder is the opposite to gazump. Usually coming into play when the housing market is on a low, it refers to the equally unscrupulous practice of the purchaser lowering their offer on the threat of pulling out if it's not accepted. This works most effectively very near the completion date, at which time the vendor is likely to be committed to a purchase of their own and be in a position when it would be awkward to withdraw, thus forcing them to take the reduced price.

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By Simon Smith