Builder, Westbuild Homes refuses to sell to me after reserved (fee paid)

Geoff_K

Hi,
I have a problem with Westbuild Homes , they are refusing to sell to me a house after the reservation fee was paid and the reservation form signed, prior to this, the builder / estate agent and I had agreed a price.

I don't think they should be doing this.

They quoted a reason of "extreme circumstances" that could mean anything.

Is there anything I can do about it especially as according to the "Customer Code for House Builders" they should not be doing so.

• Can anything be gained by taking this further (preferably the house or some compensation) ?
• Is the code worthless?
• Does a reservation have any legal standing?
• Here is the bit in the customer code that says they shouldn't do this.

"2.6 Reservation
Home Buyers must be given a Reservation agreement that sets out clearly the terms of the
Reservation, including, but not limited to:

• the amount of the Reservation fee;
• what is being sold;
• the purchase price;
• how and when the Reservation agreement will end;
• how long the price remains valid;
• the estimated cost and nature of any management services the Home Buyer must
• pay for.

The Reservation fee must be reimbursed if the Reservation agreement is cancelled. The
Home Buyer must be told of any deductions that may be made.
While the Reservation agreement is in force, the Home Builder must not enter into a new
Reservation agreement or sale agreement with another customer on the same Home."

Thanks

Geoff

kingstreet

If they cancel the reservation and refund your reservation fee, they seem to have acted according to the code.

If they choose not to sell to you, there's nothing much you can do about it.

Geoff_K

It makes me wonder what is the point in paying to reserve a house then if the builder just pulls out with no penalty to them ?

Geoff

kingstreet

It's the same as any other house purchase transaction in England.

Purchaser or vendor can pull out at any time prior to exchange of contracts.

Slinky

kingstreet wrote: »

It's the same as any other house purchase transaction in England.

Purchaser or vendor can pull out at any time prior to exchange of contracts.

There was an updated thread on here last week where a purchaser had pulled out the day after paying their deposit and the housebuilder refused to refund it. It went to court and the purchaser lost the deposit. This appears to be the same in reverse only the housebuilder will presumably return the deposit, why aren't they having to give the purchaser an additional amount equal to the deposit. Seems to be heads they win, tails he loses.

kingstreet

You may be confusing deposit and reservation fee here.

If the builder adheres to the consumer code, it will have set out the circumstances for cancellation and what is refunded.

kingstreet

Geoff, can you confirm if the builder is actually a member of the code, by virtue of;-

"The code applies to homes reserved on or after 1st April 2010 that are registered with NHBC and Premier Guarantee & LABC New Home Warranty, currently the only Home Warranty bodies supporting the Consumer Code scheme."

It seems it does not have to adhere to the code if it does not offer one of the above warranties.

Apologies. I was wrong earlier. If it does adhere, it cannot cancel the reservation unless the expiry date has been reached and contracts have not been exchanged.

"No; A Home Builder cannot cancel the Reservation agreement. It is either cancelled by the Home Buyer or it expires on the due date – unless it has been extended by mutual agreement through the legal advisers."

Geoff_K

They do offer the the NHBC guarantee per their website and the estate agent. I found the code links on their website so presume they are supposed to adhere to it.

"Your new Westbuild home is protected by the 10 year NHBC Buildmark cover"
westbuildhomes . co . uk slash pages slash customer.html

kingstreet

In which case, the code says they can't cancel the reservation, unless it has expired due to you not meeting a deadline.

Geoff_K

Cheers,

But they have cancelled the reservation. I can't have the house even though they shouldn't have cancelled, they have !

How do I get them to sell me the house?

I did speak to me lawyer and she reckoned there wasn't much I could do about it !

kingstreet

Complaints/dispute resolution here;-

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