Estate agent refusing to refund deposit

Two9A

Afternoon, all.

So I bought a house recently, and the estate agent wanted a deposit, which I duly supplied. I got a receipt, stating "Refundable upon completion". Between that point and completion, the estate agent dissolved and set up under another name.

After completing, I've asked for the deposit back on multiple occasions, but the agent says that because it was put in under another name, he'll have "great difficulty" in getting it to me. He stated last week that he'd call this week, and hasn't done so; he also wasn't in the agent's (new) office this morning, so I can't contact him.

It's been a month or so since I completed, and still no refund. Two questions, then:

Has my money disappeared?
Can I do anything to get it back?

princessamy86

How much was the deposit for and did the EA tell you why they needed a deposit? I've never heard of this happening!

maninthestreet

Deposits are paid at point of contract exchange, and never to the vendor's EA.

Two9A

To clarify: The deposit was a £500 security/holding deposit taken by the EA; the seller had had a few prospective buyers previously, and the agent mentioned at one point that he was taking a deposit against my pulling out.

The deposit for the house itself was taken through the conveyancor, as it should be.

Floxxie

Then speak to your conveyancer. It was not the EA taking your deposit but the vendor.

princessamy86

I really don't think the EA should have asked for any money off you. I see no problem with the vendor asking for a holding deposit but I think it should have been lodged with your solicitor, not the EA. I honestly don't know what you should do with regards to getting the money back, I'm sure someone who knows more about that will help but maybe try CAB? I don't think this should have happened, I don't know any EAs that would handle any kind of deposit unless it was for rent.

PasturesNew

Round up some Big Issue guys and pay them £10 to sell the Big Issue outside the EA's offices, whilst holding banners saying they'd robbed your deposit.

20 minutes I give it.... refund in cash, in full.

Zelie

Just wander in and point out what nice windows he has and did it cost more than £500 to get them put in. You're not asking for malicious reasons - you are merely thinking about getting some for your own home.

Debt_Free_Chick

Deposits are not normally paid to EAs.

In this case, however, your deposit was paid to an EA that has gone bust, I think. If that is the case, then you are in the queue with everyone else who is owed money and I fear you have lost your deposit.

If the old EA was "dissolved" then the new EA does not take on the debts, even if the same managers are involved. I fear you have no chance of recovering your money, but speak to your conveyancer/solicitor.

poppysarah

Who signed the receipt?

lynzpower

Fore crying out loud guys please read the question!!

EA'S can and do ask for a "holding deposit" with varying success. Its my personal view that the EA that does this is crooked as the point of the deposit is to halt viewings on behalf of the vendor and hold the property for that buyewr- IE the OP.

If people come on this site asking " should I pay this, the EA is asking for a deposit" overwhelmingly the answer is no. However, OP has paid this.

This is absoultely NOT the same as the deposit for the property that is taken throughout the copnveyancing process.

OK. OP

Was this a new build property?

Is the Estate agent a member of NAEA ?