Retention Monies

HeaterHeater

I bought a leasehold property three and a half years ago and my solicitor kept back a £2000 retention in respect of a major works charge which had not yet been finalised. Six months later the final bill arrived. It was £2500. I paid £500 and the retention monies were used to cover the remainder.

Now a refund of £1300 has been made in respect of the major works charge. Am I LEGALLY obliged to return £800 to the vendor if requested?

Thank you.

dodger1

I have no idea about the legality but it's certainly the right thing to do.

AndyT678

dodger1 wrote: »

I have no idea about the legality but it's certainly the right thing to do.

What he said. There's a difference between saving money and shafting people.

jjlandlord

Without knowing the legalities of rentention monies it is not possible to say whether returning the money is the right thing to do...

cattie

I've had a similar thing happen to me recently, but my refund wasn't as much as yours, it was about £350 left over from major works that the previous owner had paid for.

To be honest, It didn't even enter my head whether it was money I shouldn't have. As the managing agents refunded it to me as the now owner of the property as credit against my next lot of service charges, I assumed it was money that I was entitled to have.

I think if you were not entitled to the money, the solicitor would automatically contacted the previous owner's solicitors regarding refunding them the money. Look upon it as a slight reduction in the cost of buying your property & getting it up to standard.

HeaterHeater

Thank you for your helpful and interesting response, cattie

Building_Surveyor

If you'd feel comfortable if someone did this to you, keep the money...

If not, give it back

Legally you do not need to give it back.

HeaterHeater

Thank you for taking the trouble to respond, Building Surveyor. It is the legal position I am interested in.

Kynthia

Surely you should ask your solicitor for the legal position? The previous owners left £2k towards the cost of the planned works on the property. The final cost of the works was £1200. I would think it is likely enough that they are due £800 of their money back that I would check. The fact that the refund was sent to you is purely because the freeholder/MA only deals with current owners, just as the bill would have been only sent to you. Neither your or the seller's solicitor will know what the bill or refund was unless someone informs them, so I wouldn't think this indicates the refund is yours to keep.

[Deleted User]

Very interested in this as going though similar issues selling my leasehold. potential works do be done but not a definite and they want me to pay so i've suggested a retainer and if the works done within 6 months i'll pay if not it's returned to me. Would hate to think the work was never done and I shell out for nothing!!