Fairview New Homes Refundable Deposit

plp76

Hi,

My wife and I placed a £1000 deposit to secure a property at the Fairview Homes Pembroke Park development in Crawley. We had previously visited different Fairview Homes developments and been advised that the £1000 deposit was fully refundable if were not successful in obtaining a mortgage. We visited the Crawley development on a few occassions and spoke to different sales staff on the phone and in person, on each occassion they assured us that the £1000 deposit was full refundable if we were not accepted for a mortgage.

In April we finally decided to place a £1000 deposit to secure an apartment, however a few weeks later we were advised that we had not been successful in obtaining a mortgage. We contacted the Pembroke Park sales office to inform them of this and they confirmed that we our deposit would be refunded but that we would need to contact the Fairview Homes head office to request the refund.

When we contacted the head office via email we received no response, and when my wife called she spoke to a lady who said she would need to ask her manager and would call back. She didn't call back and so we contacted her again, only to be told that for some reason we weren't entitled to a refund.

I have since written, called, and emailed Fairview homes and have received no response. I recently contacted Consumer Advise who said that if I could find other people who had also been told the deposit was fully refundable that we could file a case against Fairview Homes.

So if anyone else has been advised that their Fairview Homes deposit was refundable, even if you had no need to claim the refund, we would really appreciate hearing from you.

Or, if you have any advice that would be greatfully received as well.

Thanks

chickmug

When you made this payment did you sign anything or were you given any paperwork at all?

plp76

Hi, yes. Unfortunately we signed a piece of paper that says Non Refundable. I know I know, not sure why on earth we did that as we, or at least my wife, is always so careful about having everything in writing. I think it was because we'd been told so often that it was refundable and even when paying the deposit the salesperson was telling us it was refundable if we didn't get the mortgage but if we were accepted but then decided not to buy then we wouldn't get the deposit back.

That's why I'm interested in finding a few other people who were told the same thing, that way I can file a case for misrepresenting the document we signed, and have evidence that others were also told the same thing

chickmug

I have been advised by our solicitor time and time again that any such deposit must be returned if the buyer pulls out. Returned in full and quickly.

However I know some builders and some agents try it on. Some say they only send back half. One associate of mine knows he should not keep these deposits but he does even though he has been told he shouldn't. He work on the basis that only an odd operson asks for it back and he tries getting away with half and if they argue he sends back. He still manages to keep most he takes.

This is from the NAEA Code of Practise but I was told in their meetings this applied to sellers and buyers so why not call the NAEA?

http://www.naea.co.uk/contact/default.aspx

7. Clients’ Money

In England, Wales and Northern Ireland
a) You must not hold a deposit or any other money belonging to a client, unless you are covered by adequate insurance.
b) All clients’ money must be held in a separate client bank or building society account or accounts, as set out in the Estate Agents (Accounts) Regulations 1981. You must be able to account immediately for all money you are holding on behalf of a client.
c) You must refund immediately any deposit paid before exchange of contracts, together with any interest that may be due when you are asked, in writing, to do so. You should ask for a receipt for all the deposits you refund.
d) You must not deduct any cost or charges from any client’s money you hold, unless your client has given you written authority to do so.

In Scotland, deposits should not be taken at any time.

plp76

That's great. Thanks for the note, I'll call them this afternoon and post the outcome on this site.

plp76

darn, I just checked on the NAEA website and it would appear that Fairview are not a member. They are a member of National House Building Association and I have emailed them to ask if there's anything they can do.

chickmug

Soory I read your post too fast and thought an EA was in the middle.

Do you have a solicitor appointed - If so you could ask them?

Or try calling: -
Trading Standards
http://www.tradingstandards.gov.uk/advice/index.cfm

Or
Consumer Direct
http://www.consumerdirect.gov.uk/

Tell Fairview that they need to be 'on notice' that you are taking appropriate advice, from a number of sources (solicitor, trading standards & others) with view to going to the Small Claims Court.

Ask them on what basis they will not return the money as you have been told, in English Law, they are not entitled to keep it. In writing and by all means email as well but recoded delivery.

Berkshiregirl

A friend bought a Fairview new build last year and was told the £1000 deposit was refundable if she didn't get a mortgage. She went ahead with the burchase so it wasn't an issue, but they did write on the slip it was refundable if the mortgage was declined (but not if she just changed her mind)

Muhasib

does it matter if they call it a reservation fee rather than a deposit ?? does that give them a legal basis to keep the fee?

bingibongi

You paid £1,000.00 to reserve a new build - are you completely mad !!!

If you signed something saying it was non-refundable - it suggests that is what was intended.

plp76

Hi, thanks for all your feedback.

Well, I am pleased to say that after numerous letters sent to the complaints department and directly to the manager who, for whatever reason, decided we couldn't have a refund, we received a one line email statiing that a refund was being processed and we would receive a cheque next week.

Included in my last letter to Fairview was a copy of all the other letters I'd sent, as well as a list of the times I'd previously called and been told that someone would call me back, I also stated that if I didn't receive a response within 14 days of the date at the top of the letter that I would involve 3rd parties in the dispute. Not sure if any of these things helped, or if they finally got tired of me annoying them, but at least now we're getting the money back and I have something in writing to this effect.