just lost £500 in less than 24 hours cos i am stupid

Parks

put a £500 cash reservation fee down on the house of my dreams yesterday at 3pm to realise as soon as I got home that it just isn't big enough for us. Phoned the man first thing this morning to explain that as much as i was hypnotised by the house it wasn't practical for me large family as well to be told that it is company policy not to return the £500 reservation fee eventho it was less than 24 hours later. How stupid am i??????? Most expensive mistake i have ever made! thought i could appeal to their better nature but no joy

ognum

Parks wrote: »

put a £500 cash reservation fee down on the house of my dreams yesterday at 3pm to realise as soon as I got home that it just isn't big enough for us. Phoned the man first thing this morning to explain that as much as i was hypnotised by the house it wasn't practical for me large family as well to be told that it is company policy not to return the £500 reservation fee eventho it was less than 24 hours later. How stupid am i??????? Most expensive mistake i have ever made! thought i could appeal to their better nature but no joy

I don't know the law on this but I would find his managers name, ask about a cooling off period. Give Citizens advice a quick call!

elsien

Is it a new build and are the company signed up to the consumer code for home builders?
As if they are, then this applies and the paperwork you were given should say how much they will withhold to cover expenses.


The Code says that if a Home Buyer cancels the Reservation Agreement or does not exchange contracts, the Home Builder should reimburse the reservation fee but be allowed to deduct his expenses and costs. What can these be and why can he deduct them?The Reservation Agreement is a legal agreement. The builder is committed to holding that property for the Home Buyer at a defined price and period of time and not to market it to any other potential buyers during the period of the Reservation Agreement. The Home Buyer is therefore protected from ‘gazumping’ or being placed in a ‘contract race’ The Home Buyer has an exclusive period in which, with the advice of their solicitor they are able to satisfy themselves in all respects that it is the property they wish to buy, that it is suitable for them, and that they have the finance available to buy it, on the terms proposed in the Contract of Sale.

If the Home Buyer does not proceed to exchange of contracts, then the Home Builder may have incurred costs in instructing solicitors, providing the detailed contract documentation, dealing with the customer’s enquiries, and other administration costs in processing the sale. They may have incurred costs in delaying the eventual sale and in remarketing of the property.

The Home Builder is allowed to deduct from the Reservation fee those costs actually incurred in holding and processing that sale.


If you don't agree with their decision they have a dispute process you can follow.

Parks

thanks for comments. i just presumed i had lost the fee, but there can't have been any costs to the builder as he hadn't even banked the money before i called. Reservation fee handed over at 3pm and phoned at 8.30am this morning to cancel. What do you think? Is there a glimmer of hope for me even though i am such a muppet!?

Pandilex

I reckon there's hope if you get your rear in gear, but you'd probably have to fight for it.

elsien

What does the paperwork you were given actually say?
I wouldn't take anyone's word for anything over the phone, you need to actually check the paperwork before you go any further. But Bellway (for example) say they withhold £250 for expenses so even if covered they may still try to with hold a large chunk.
And your phone call of this morning is easily denied so probably you need to do things in writing.


Here's the consumer code if you want to check in more detail if you're covered.

http://www.consumercodeforhomebuilders.com/code.php


You could also try trading standards as well.

Parks

the paperwork says 'the fee reserves the property exclusively for the purchaser for a period of 28 days by which time exchange of contracts must have taken place. the fee is strictly non-refundable in the event that the purchaser does not proceed with the purchase of the property within the timescale set.
sounds like i am screwed!!

dgtazzman

Not by definition, not everything papers say is actually enforceable. I believe they have to be able to show they have actually suffered losses to the amount of £500 if they want to keep the money, if they can't, they have to refund it minus the cost of any losses they can prove, or you could lodge a small claims case against them.

I think with Barratt's we received back £300 of our £500 reservation fee. With Keepmoat, if we hadn't proceeded, we would have lost £50 before contracts had been sent, £100 or £150 after that point (can't recall, as we did proceed with that purchase).

Parks

Can't thank you all enough - you have given me hope! I have just written a letter to the company (it is a small building firm) and appealed to them to reconsider as they can't possibly have incurred any costs and am ready to post today so fingers crossed they may respond to that but i think i will know keep going and pursue for the money back. Feel so sick and stupid though - so totally out of character for me as i am usually a real moneysaving expert!!

Vampgirl

Our Taylor Wimpey reservation form says:

If the Buyer cancels the Reservation or withdraws from the proposed purchase before the legal documents are issues to the Buyers Convenancer then the Reservation Fee will be refunded less the sum of £100 which will be retained by the Company towards its administrative expenses.

I would have thought your developers should only be able to keep enough to cover their actual expenses, and in such a short time I think they'd struggle to prove they had actually incurred any such expenses.

anamenottaken

Parks wrote: »

Can't thank you all enough - you have given me hope! I have just written a letter to the company (it is a small building firm) and appealed to them to reconsider as they can't possibly have incurred any costs and am ready to post today so fingers crossed they may respond to that but i think i will know keep going and pursue for the money back. Feel so sick and stupid though - so totally out of character for me as i am usually a real moneysaving expert!!

Are you able to get a proof of posting certificate from a post office?