A NSW vendor accepted Priya's offer verbally, and Priya paid an expression of interest deposit and a building and pest report. Before exchange, the vendor signed with another buyer at a higher price. What can Priya recover?
Correct Answer
A) Her expression of interest deposit, but not her inspection costs
Gazumping occurs when a seller accepts an offer but sells to someone else before exchange. Because a NSW sale binds only on exchange, the buyer has no contract to enforce. NSW Fair Trading guidance states that neither the agent nor the seller must compensate the buyer for legal, inspection or finance costs, but the expression of interest payment must be refunded in full.
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