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

Sparx

I would go down the Small Claims Court route if they don't refund anything.

It is highly unlikely they have incurred any costs, even if like the big builders do and they just deduct £100 for 'administrative purposes' would be a suitable suggestion.

Parks

Its a small company not one of the big ones - the house was a small new bungalow on an individual plot, so just a single build and they do just very small developments so not sure pif that makes a difference?

Sparx

That was my point, the big builders would've taken up proper legal advice and had their reservation/deposit forms reviewed by various solicitors to ensure it is water tight and enforceable. Hence they typically include a clause in the reservation/deposit agreements that they will refund a % or deduct £x amount from the fee before returning it.

They can not reasonably expect to retain a full £500 deposit when they have not incurred any actual costs, if not minimal administration work hence the suggestion of maybe a £100 deduction.

So the small builders have not been bothered to check their agreements (the deposit form at least) is actually legally enforceable in a Court of Law (which it isn't).

Parks

Sparx, you have made my day! It does seem very unreasonable to expect to keep £500 for a much less than 24 hours arrangement. I will keep you posted how i get on tomorrow and thanks again everyone.

Parks

i don't seem to be getting anywhere this morning. phoned citizens advice who advised me to phone the property ombudsman which i have done and they said its nothing to do with them as they only deal with problems from estate agents and not property developers. They advised me that as i have signed a contract on the premises there is no cooling off period. I explained that it wasn't signed on business premises but in the house that i was supposed to be buying and they just said i need to get legal advice!

Pandilex

Don't put faith in even the big corporations having airtight contracts.

There are plenty of cases where they lose in court too, especially small claims. Often it's the interpretation of the contract that is the issue as each set of circumstances is unique.

Parks

think i may have to look at the small claims procedure now.

dodger1

This may help,

http://www.consumercodeforhomebuilders.com/downloads/CCHB%20Guide%20for%20Home%20Buyers.pdf

Parks

dodger1 wrote: »

This may help,

http://www.consumercodeforhomebuilders.com/downloads/CCHB%20Guide%20for%20Home%20Buyers.pdf

thanks for this Dodger - i have just checked it and it says

Any reservation fee must be refunded if the reservation agreement is cancelled and the Home Buyer advised of their right to terminate the agreement and any administrative
costs that may be applied. Deposits and other pre payments must also be protected and Home Buyer advised how this will be done.

i didn't get anything other than the piece of paper that says my reservation is non refundable so it looks like they are not abiding by the code. Am i reading that correctly?

dodger1

Parks wrote: »

thanks for this Dodger - i have just checked it and it says

Any reservation fee must be refunded if the reservation agreement is cancelled and the Home Buyer advised of their right to terminate the agreement and any administrative
costs that may be applied. Deposits and other pre payments must also be protected and Home Buyer advised how this will be done.

i didn't get anything other than the piece of paper that says my reservation is non refundable so it looks like they are not abiding by the code. Am i reading that correctly?

I'm no expert but I'd say so and the link also tells you who to complain to if they don't back down.