New Build Reservation Fee Refund
Discussion
Hope someone can advise?
Put down a reservation fee for a property (£1000), of which 50% was refundable in the event we pulled out. This was agreed on the basis we had a property to sell. All paperwork quotes 28 days reservation, albeit emails from both developer and EA confirm happy to wait until we sell.
Fast forward 4 months and 4 failed buyers (chain issues and funding issues), we are at point of exchanging on our sale with a 5th buyer in next week or so, however the developer has contacted us to say he's accepted a higher offer. We are still proceeding with our sale, however we are having issues getting the money refunded. My thoughts are we are due a full refund as we were committed to the sale.
Also, the developer isn't returning calls, emails or other attempts at contact, likewise the EA won't release any other contact details due to Data Protection.
Any ideas (not involving frozen sausages?)......
Put down a reservation fee for a property (£1000), of which 50% was refundable in the event we pulled out. This was agreed on the basis we had a property to sell. All paperwork quotes 28 days reservation, albeit emails from both developer and EA confirm happy to wait until we sell.
Fast forward 4 months and 4 failed buyers (chain issues and funding issues), we are at point of exchanging on our sale with a 5th buyer in next week or so, however the developer has contacted us to say he's accepted a higher offer. We are still proceeding with our sale, however we are having issues getting the money refunded. My thoughts are we are due a full refund as we were committed to the sale.
Also, the developer isn't returning calls, emails or other attempts at contact, likewise the EA won't release any other contact details due to Data Protection.
Any ideas (not involving frozen sausages?)......
scoobster999 said:
Put down a reservation fee for a property (£1000), of which 50% was refundable in the event we pulled out. This was agreed on the basis we had a property to sell. All paperwork quotes 28 days reservation, albeit emails from both developer and EA confirm happy to wait until we sell.
Fast forward 4 months and 4 failed buyers (chain issues and funding issues), we are at point of exchanging on our sale with a 5th buyer in next week or so, however the developer has contacted us to say he's accepted a higher offer. We are still proceeding with our sale, however we are having issues getting the money refunded. My thoughts are we are due a full refund as we were committed to the sale.
So you reserved it for 28 days, four months ago?Fast forward 4 months and 4 failed buyers (chain issues and funding issues), we are at point of exchanging on our sale with a 5th buyer in next week or so, however the developer has contacted us to say he's accepted a higher offer. We are still proceeding with our sale, however we are having issues getting the money refunded. My thoughts are we are due a full refund as we were committed to the sale.
If you pulled out in the 28 days, you were due a 50% refund - but what does the paperwork say is due if you don't pull out or exchange within the 28 days, and the time expires? I would suspect the answer is "The £1000 is forfeit" - which is where you are now.
The developer was "happy to wait" - but was there anything in writing committing them to your reservation? Or just a verbal agreement?
Having just exchanged on a new build you need to check wording on the reservation form very carefully as that is effectively a pre-exchange contract you have signed with the developer. Not exchanging in 28 days is considered a break in that contract, especially after 4 months!
Developers will allow for some flexibility (my exchange deadline was 6 weeks not 28 days like most and we still missed it by a week), some local authority searches take ages to come back and if you're in a chain you simply can't do it in 28 days.
They set these deadlines partly to get the houses shifted, and partly to protect themselves from market fluctuations (usually dropping) like in the recession. In four months I expect the house has gone up in value and if they can get more for the same house then can't see why they'd hold it for you at the same price after 4 months.
Developers will allow for some flexibility (my exchange deadline was 6 weeks not 28 days like most and we still missed it by a week), some local authority searches take ages to come back and if you're in a chain you simply can't do it in 28 days.
They set these deadlines partly to get the houses shifted, and partly to protect themselves from market fluctuations (usually dropping) like in the recession. In four months I expect the house has gone up in value and if they can get more for the same house then can't see why they'd hold it for you at the same price after 4 months.
Id be making clear a few things. You have an agreement with them which they are now rebadging on. Either they complete with you as agreed or refund you in full.
Think I'd be telling them also that you'll be parking up at the show home and collaring anyone that goes in to tell them how shoddily they have treated you make it clear to the sales negotiator what you're doing so they end up calling the sales manager or higher.
Think I'd be telling them also that you'll be parking up at the show home and collaring anyone that goes in to tell them how shoddily they have treated you make it clear to the sales negotiator what you're doing so they end up calling the sales manager or higher.
elanfan said:
Id be making clear a few things. You have an agreement with them which they are now rebadging on. Either they complete with you as agreed or refund you in full.
Think I'd be telling them also that you'll be parking up at the show home and collaring anyone that goes in to tell them how shoddily they have treated you make it clear to the sales negotiator what you're doing so they end up calling the sales manager or higher.
Just to pick up on a couple of your points where it appears you haven't grasped the situation.Think I'd be telling them also that you'll be parking up at the show home and collaring anyone that goes in to tell them how shoddily they have treated you make it clear to the sales negotiator what you're doing so they end up calling the sales manager or higher.
The agreement was over a 28 day period, that expired 3 months ago, we don't know the post 28 wording of the contract the builders/developers are now rebadging [sic].
What is the shoddy manner in which they've been treated taking into account my point above, I think waiting 3 months past a contractual date is quite fair, admittedly this period could have been shorter or may have been longer until a higher offer was made.
I'm not sure in the circumstances making a stance as you describe would actually be beneficial, and may in fact cause more problems of a different nature.
OP, as said in other posts, the devil is the detail, what does the contract/agreement say post the 28 day period?
sherbertdip said:
elanfan said:
Id be making clear a few things. You have an agreement with them which they are now rebadging on. Either they complete with you as agreed or refund you in full.
Think I'd be telling them also that you'll be parking up at the show home and collaring anyone that goes in to tell them how shoddily they have treated you make it clear to the sales negotiator what you're doing so they end up calling the sales manager or higher.
Just to pick up on a couple of your points where it appears you haven't grasped the situation.Think I'd be telling them also that you'll be parking up at the show home and collaring anyone that goes in to tell them how shoddily they have treated you make it clear to the sales negotiator what you're doing so they end up calling the sales manager or higher.
The agreement was over a 28 day period, that expired 3 months ago, we don't know the post 28 wording of the contract the builders/developers are now rebadging [sic].
What is the shoddy manner in which they've been treated taking into account my point above, I think waiting 3 months past a contractual date is quite fair, admittedly this period could have been shorter or may have been longer until a higher offer was made.
I'm not sure in the circumstances making a stance as you describe would actually be beneficial, and may in fact cause more problems of a different nature.
OP, as said in other posts, the devil is the detail, what does the contract/agreement say post the 28 day period?
In late February I paid a £1000 'reservation' fee on a house due to be completed in late July. The reservation was for a nominal 28 days - actually until the last day of March. The reservation period was extended until 10th April as the developer's solicitor took 15 days to send the draft contract to my solicitor. The reservation agreement clearly stated that I was to exchange contracts by the stated date or the developer reserved the right to cancel the reservation and return £500 of the fee - the remainder they would retain to cover their costs.
On the 7th of April I cancelled my reservation as my solicitor's searches, and my own enquiries, found that the plot had a risk of flooding. The £500 was returned within 3 days. I was dealing directly with the developer and no estate agent was involved.
I suggest that the OP carefully reads the reservation agreement. My agreement clearly stated that the developer could remarket the property if I failed to exchange contracts by the stated date.
On the 7th of April I cancelled my reservation as my solicitor's searches, and my own enquiries, found that the plot had a risk of flooding. The £500 was returned within 3 days. I was dealing directly with the developer and no estate agent was involved.
I suggest that the OP carefully reads the reservation agreement. My agreement clearly stated that the developer could remarket the property if I failed to exchange contracts by the stated date.
In late February I paid a £1000 'reservation' fee on a house due to be completed in late July. The reservation was for a nominal 28 days - actually until the last day of March. The reservation period was extended until 10th April as the developer's solicitor took 15 days to send the draft contract to my solicitor. The reservation agreement clearly stated that I was to exchange contracts by the stated date or the developer reserved the right to cancel the reservation and return £500 of the fee - the remainder they would retain to cover their costs.
On the 7th of April I cancelled my reservation as my solicitor's searches, and my own enquiries, found that the plot had a risk of flooding. The £500 was returned within 3 days. I was dealing directly with the developer and no estate agent was involved.
I suggest that the OP carefully reads the reservation agreement. My agreement clearly stated that the developer could remarket the property if I failed to exchange contracts by the stated date.
On the 7th of April I cancelled my reservation as my solicitor's searches, and my own enquiries, found that the plot had a risk of flooding. The £500 was returned within 3 days. I was dealing directly with the developer and no estate agent was involved.
I suggest that the OP carefully reads the reservation agreement. My agreement clearly stated that the developer could remarket the property if I failed to exchange contracts by the stated date.
Edited by Glosphil on Saturday 15th April 17:43
In late February I paid a £1000 'reservation' fee on a house due to be completed in late July. The reservation was for a nominal 28 days - actually until the last day of March. The reservation period was extended until 10th April as the developer's solicitor took 15 days to send the draft contract to my solicitor. The reservation agreement clearly stated that I was to exchange contracts by the stated date or the developer reserved the right to cancel the reservation and return £500 of the fee - the remainder they would retain to cover their costs.
On the 7th of April I cancelled my reservation as my solicitor's searches, and my own enquiries, found that the plot had a risk of flooding. The £500 was returned within 3 days. I was dealing directly with the developer and no estate agent was involved.
I suggest that the OP carefully reads the reservation agreement. My agreement clearly stated that the developer could remarket the property if I failed to exchange contracts by the stated date.
On the 7th of April I cancelled my reservation as my solicitor's searches, and my own enquiries, found that the plot had a risk of flooding. The £500 was returned within 3 days. I was dealing directly with the developer and no estate agent was involved.
I suggest that the OP carefully reads the reservation agreement. My agreement clearly stated that the developer could remarket the property if I failed to exchange contracts by the stated date.
Edited by Glosphil on Saturday 15th April 17:53
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