Reservation fee on New Build

Ms_Sophia

Hello all,
we recently saw a new build property which we really liked. There are some things which we don't like about that property but we still decided to buy it. So we went ahead and sent them a reservation form for this property where it's mentioned that a reservation fee is £2,000 and non-refundable. But we still haven't made the actual payment of this fee yet.

Now with the long weekend we've had a lot of time to discuss it with hubby... and we ended up having second thoughts and might want to pull out of this purchase, after all.

The question is - can the developer make me pay the reservation fee anyway? based on the fact that I sent them a reservation form with my signature.

Gwhiz

Think you'll have to read the smallprint of what you signed.

Ms_Sophia

Thanks I did read it though Actually there is no small print but in the body of the reservation form it's written "Payment terms: 1. A non-refundable reservation fee of £2,000 is payable upon reservation".
Does it mean I must pay the fee even if I decide to pull out before paying it?

Gwhiz

It does sound like you owe them £2000. I'd call them up and maybe as you have yet to make payment you might get lucky.

It's one of those "make sure before you sign" situations I'm afraid by the sounds of it.

Errata

If you haven't signed anything whatsoever, but have merely discussed reserving, when the Builder tells you that you've reserved and wants £2k - tell them they misunderstood what you said. I doubt they recorded the discussion.

Ms_Sophia

Thanks guys. But in this case it was not only a discussion, I did send them a reservation form signed by me via email and was supposed to send money too but I haven't. Am wondering if signing that form is legally binding to pay the fee.

pleasedelete

It sounds like the reservation isn't made until the payment is received.

Cash-Cow_3

Don't turn a £2,000 mistake into a £200,000 one.

GlynD

If you haven't paid the money then don't. Simple as that. I'd go and see them though and negotiate, better to do that than face a Small Claims Court action.

Ms_Sophia

Hmm... are you saying that they could demand the money if I don't pay it, even thru a Small Claims Court?

Ms_Sophia

Thanks for all the answers!

Any other views please on if the developer can make me pay the reservation fee based on the signed reservation form?