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House purchase deposit not being returned
mrawesomeok
Posts: 1 Newbie
Hello all I am new to here but would like some advice.
We recently paid a £200 deposit to an estate agent as a reservation fee to secure a house that was on their books. Due to the loss of the sale of the property (our current one) we were porting the mortage funds from we have had to pull out of the deal for the purchase.
I have asked for the deposit back and the agent is refusing to return claiming it was non refundable. Can anyone tell me if it is legal for an agent to kepp our money in this regard? It is worth noting that the agent is not passing the money to their client but retaining the money for themselves. I am sure this is not legal as it is the vendor who pays the agent fees not the purchasor.
I work in the housebuilding industry and we cannot by law under the consumer code retain a deposit for a new build should the purchasor pull out of the sale before contract exchange, I see this as the same thing but am not sure if estste agents fall under the same rules and if not does anyone have any guidence as to who I can threathen them with or under what legistslation I can quote. I have though about the FSA or FSO what do you all think.
Regards
We recently paid a £200 deposit to an estate agent as a reservation fee to secure a house that was on their books. Due to the loss of the sale of the property (our current one) we were porting the mortage funds from we have had to pull out of the deal for the purchase.
I have asked for the deposit back and the agent is refusing to return claiming it was non refundable. Can anyone tell me if it is legal for an agent to kepp our money in this regard? It is worth noting that the agent is not passing the money to their client but retaining the money for themselves. I am sure this is not legal as it is the vendor who pays the agent fees not the purchasor.
I work in the housebuilding industry and we cannot by law under the consumer code retain a deposit for a new build should the purchasor pull out of the sale before contract exchange, I see this as the same thing but am not sure if estste agents fall under the same rules and if not does anyone have any guidence as to who I can threathen them with or under what legistslation I can quote. I have though about the FSA or FSO what do you all think.
Regards
0
Comments
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Was it a sale or rental?
Ive never heard of an agent taking a holding deposit before where the property wasnt a new build.
What was the terms that you agreed?
It sounds, from what you have said, that there should be no reason for them to give it you back since you have backed out of the property.£2 Savers Club #156!
Looking for holiday ideas for 2016. Currently, Isle of Skye in March, Riga in May, Crete in June and Lake District in October. August cruise cancelled, but Baby due September 2016! :j0 -
What was the purpose of the deposit? If it was to show that you were serious buyers and give some kind of commitment to purchase, then it's not all that surprising that they won't refund now that you are pulling out!mrawesomeok wrote: »Hello all I am new to here but would like some advice.
We recently paid a £200 deposit to an estate agent as a reservation fee to secure a house that was on their books.0 -
If you put down a deposit down to buy a new mercedes for example, then decided you didn't want it- they'd keep your money.
There is no difference here.“Washing one's hands of the conflict between the powerful and the powerless means to side with the powerful, not to be neutral. ”
― Paulo Freire, Pedagogy of the Oppressed0
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