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Pay Reservation fee without Reservation Agreement?
tellme_why
Posts: 57 Forumite
Hello Forum
My offer for a new house under construction has been accepted, but the developer (a small local company) now wants I pay a reservation fee ( £ 3000) on her bank account; I will receive a payment receipt from her solicitor as soon as the money arrives she said.
My solicitors says I need a reservation agreement to be prepared by her and reviewed by my solicitor and undersigned by both parties before giving any money.
Did you ever encountered such weird request?
Who in the world pays £ 3000 to someone else without even a piece of paper undersigned by both parties?
The developer thinks this is perfectly normal and she is doing this way all the time..
It looks to me that the developer is genuine, want to see me committed to the buy, which I am but by pushing for a payment without a piece of paper she is putting me off..
Is a reservation payment without reservation agreement common practice in England among small developers?
My problem is that some other buyer who is careless of risk of paying money without agreement will accept the term and nick the property whose price is already agreed between me and developer..
many thanks
My offer for a new house under construction has been accepted, but the developer (a small local company) now wants I pay a reservation fee ( £ 3000) on her bank account; I will receive a payment receipt from her solicitor as soon as the money arrives she said.
My solicitors says I need a reservation agreement to be prepared by her and reviewed by my solicitor and undersigned by both parties before giving any money.
Did you ever encountered such weird request?
Who in the world pays £ 3000 to someone else without even a piece of paper undersigned by both parties?
The developer thinks this is perfectly normal and she is doing this way all the time..
It looks to me that the developer is genuine, want to see me committed to the buy, which I am but by pushing for a payment without a piece of paper she is putting me off..
Is a reservation payment without reservation agreement common practice in England among small developers?
My problem is that some other buyer who is careless of risk of paying money without agreement will accept the term and nick the property whose price is already agreed between me and developer..
many thanks
0
Comments
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A reservation agreement is completely normal.0
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