House Builder removed offer?

Bowes100

Im after some advise please.

I reserved a plot at Easter 2014, when we reserved the builder had an easter egg competion and we won £250 worth of metro centre vouchers which we would recieve on completion. Obviously we were over the moon with the extra help.

So we moved in three weeks ago and to date have not gotten the vouchers. So I've chased this up to be told because we changed the way we were purchasing the property we can't have them?

We've had nothing in writing to advise us this and its the first time this has been mentioned? I can't see how they can do this as not everyone purchased their plot at Easter, so not everyone got this gift, they are now saying its an incentive?

Where do I stand?

Thanks

kingstreet

If the builder is covered by one of the usual warranty schemes like NHBC try;-

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

Bowes100

It is covered, but this is to do with a gift being retracted, not an issue with the house...although there are plenty of issues they are being addressed very slowly.

eddddy

Did they tell you about the competition before you agreed to reserve your house? If so, it was an incentive to enter into the reservation contract - and 'changing their minds' now would be breach of contract.

(They may say that the t&cs of the competition mean you are not eligible for the prize - but they should have made you aware of those t&cs at the time.)


If it was a competition/prize that wasn't an incentive to enter into a contract, perhaps they may have breached the Consumer Protection from Unfair Trading Regulations (2008). See: http://www.adviceguide.org.uk/england/consumer_w/consumer_protection_for_the_consumer_e/consumer_unfair_trading_e/consumer_trading_practices_that_are_always_unfair_e/free_gifts_competitions_and_prize_draws_unfair_commercial_practices.htm

You could report them to Trading Standards, but that probably wouldn't get you any compensation. (And because you didn't pay anything to enter, I don't think a contract exists.)

kingstreet

Bowes100 wrote: »

because we changed the way we were purchasing the property we can't have them

Can you explain what you mean by this?

Bowes100

Basically I was going to put 10% deposit down, but the mortgage advisor said we would be better off using help to buy and paying 5%, which we did.

We lost the 10k incentives on the property that we had chosen, and I was told that and then paid for the upgrades ourselves. But nothing was mentioned about the gift vouchers. When I reserved the property we were offered to 'pick an egg' within the egg was £250 worth of vouchers. To me this is a gift not an incentive.

The builder is saying because it wasnt disclosed on the reservation form to the mortgage company, it would be classed as fraud if they gave us them now? However, the 2k they gave us towards carpets wasn't disclosed either?

During the building process I've asked the sales advisor when we would get the vouchers, he said on completion. The day we got the keys we asked again and were told they would be issued automatically, now we are being told its classed as an incentive and we can't have them?

kingstreet

Bowes100 wrote: »

We lost the 10k incentives on the property that we had chosen, and I was told that and then paid for the upgrades ourselves. But nothing was mentioned about the gift vouchers. When I reserved the property we were offered to 'pick an egg' within the egg was £250 worth of vouchers. To me this is a gift not an incentive.

The builder is saying because it wasnt disclosed on the reservation form to the mortgage company, it would be classed as fraud if they gave us them now? However, the 2k they gave us towards carpets wasn't disclosed either?

During the building process I've asked the sales advisor when we would get the vouchers, he said on completion. The day we got the keys we asked again and were told they would be issued automatically, now we are being told its classed as an incentive and we can't have them?

So, used HTB - Equity Loan to increase your deposit?

Which lender did you use?

It's true some lenders won't accept any builder cash incentives, or accept only a lower amount for HTB - EL cases but others are happy with upto 5%.

With the level of incentives you had, I'd have made sure you kept them and used the right lender, if at all possible.

I can't tell you if what they are claiming about the "prize" suddenly becoming an incentive is true, but suggesting you can't have incentives on HTB - EL is not true.

Bowes100

We are with Halifax, but your right it can't be true as we got 2k towards the carpets.

They are basically saying because it cost them 3% to allow us to use the HTB this is why they have stripped the prize. I'm gutted as now we don't have the funds to get light fittings etc as we were expecting the additional help

kingstreet

This is another "urban myth."

NewBuy used to cost the builder 3% of the purchase price, but HTB - Equity Loan costs the builder nothing.

Halifax restricts builder cash incentives to 1% on HTB - EL, where the mortgage and incentives have to equal no more than 95% of the 80% after the equity loan is taken into account.

FWIW non-cash incentives such as carpets aren't included.

stator

Do you have any paperwork regarding the prize/competition ?

Bowes100

No, nothing and its not noted on any of their paperwork or ours.