New Build Reservation Fee Refund

jaxkesa

I reserved a new build house from a large builder a few months ago and paid the £500 reservation fee. I cancelled the reservation 5 weeks ago and have been struggling to get any of the reservation fee refunded.

After several ignored emails, they have said they will send me a cheque for half of the fee because the reservation is more than 48 hours old although I have yet to receive it.

Are they able to simply deduct 50% like this because
the Consumer Code for Home Builders suggests they should only deduct any reasonable or other costs?

2.6 Reservation

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.

The nature and extent of the likely cost of deductions from the Reservation fee should be set out in the Reservation agreement. Such costs may include, but are not limited to, those incurred in providing the contract documents and the administrative costs of processing the Reservation. Setting or deducting a fixed percentage or fixed amounts from the Reservation fee is not acceptable


3.4 Contract deposits and pre-payments

If a Reservation is cancelled, you should repay the Reservation fee to the Home Buyer, less any reasonable administrative or other costs you have genuinely incurred in processing and holding the Reservation.

LittleMax

Then I would write to them pointing this out and asking for a full breakdown of the deductions they are making. Also pointing out how long you have been waiting for the refund and asking them to confirm when you will receive the refund which you trust will be for more than 50% of the reservation fee.

giddypenguin

Rather than looking at the customer code (which they may or may not need to adhere to) you'd be better off looking at the agreement you signed when you paid the reservation fee. What does that say?

libf

giddypenguin wrote: »

Rather than looking at the customer code (which they may or may not need to adhere to) you'd be better off looking at the agreement you signed when you paid the reservation fee. What does that say?

The have to adhere to the code. Nothing in the reservation will contradict that.

OP, ask for the costs break down as suggested (write ans get proof of posting) and if they ignore it or you don't agree with the breakdown they escalate it with the NHBC.

giddypenguin

libf wrote: »

The have to adhere to the code. Nothing in the reservation will contradict that.

OP, ask for the costs break down as suggested (write ans get proof of posting) and if they ignore it or you don't agree with the breakdown they escalate it with the NHBC.

Still, the code says deductions will be detailed in the reservation agreement - so OP still needs to read it and figure out what they agreed to.