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Reservation fee
badaz52
Posts: 255 Forumite
Hi all,
We have been going through a process of moving home and had received an offer for our house a few months ago probably April/May time. We found a home we liked the look of, reserved and paid the £500 fee. We are using the government backed HTB so had this approved and the mortgage was approved.
The builder gave us about 4 weeks to find another buyer as a gesture of good will and then as a further gesture offered to help us sell on their help to sell scheme getting another EA involved and giving us another 6 weeks at a reduced price although they did state that if a cash buyer came along for the plot we had reserved then we would lose out which we were OK with as that is how business works.
Following the 6 week period we had still not found a buyer. The builder called and said they would let it run over for a while. I had not heard anything until today to be told that the plot we had reserved is now sold to someone else, I don't have a problem with this obviously although I am dissapointed.
I am just a little bit annoyed that the attitude of the builder on the phone was one of "oh yeah that plot you wanted is gone" there was no mention of the £500 they are in receipt of they just said they will wait to hear from me. They could have told me a while ago but instead have kept hold of my reservation fee clearly with the idea of when you get a buyer we will move you onto another plot.
The issue for me is we reserved that plot in good faith and when we had a buyer, losing the buyer was not our fault and we certainly didn't pull out of anything so I would expect the reservation fee back in full because there is no guarantee that when ours does sell again we will like any of the plots this particular builder will have available as we wanted open plan. If I ask for the reservation fee back, I should receive it in full right?
We have been going through a process of moving home and had received an offer for our house a few months ago probably April/May time. We found a home we liked the look of, reserved and paid the £500 fee. We are using the government backed HTB so had this approved and the mortgage was approved.
The builder gave us about 4 weeks to find another buyer as a gesture of good will and then as a further gesture offered to help us sell on their help to sell scheme getting another EA involved and giving us another 6 weeks at a reduced price although they did state that if a cash buyer came along for the plot we had reserved then we would lose out which we were OK with as that is how business works.
Following the 6 week period we had still not found a buyer. The builder called and said they would let it run over for a while. I had not heard anything until today to be told that the plot we had reserved is now sold to someone else, I don't have a problem with this obviously although I am dissapointed.
I am just a little bit annoyed that the attitude of the builder on the phone was one of "oh yeah that plot you wanted is gone" there was no mention of the £500 they are in receipt of they just said they will wait to hear from me. They could have told me a while ago but instead have kept hold of my reservation fee clearly with the idea of when you get a buyer we will move you onto another plot.
The issue for me is we reserved that plot in good faith and when we had a buyer, losing the buyer was not our fault and we certainly didn't pull out of anything so I would expect the reservation fee back in full because there is no guarantee that when ours does sell again we will like any of the plots this particular builder will have available as we wanted open plan. If I ask for the reservation fee back, I should receive it in full right?
0
Comments
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I'm afraid I can't read the agreement under which you paid the fee! So cannot answer.
If it was dependant on you Exchanging contracts within 6 weeks or whatever, then probobly not. Though I expect the small print specifies exactly when it will be returned if you, or the developer backs out, and for what reasons etc.
Read what you signed!0 -
All I have is a piece of paper saying what plot I reserved and how much I paid, there are no T&Cs printed on it.0
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Must admit I find that surprising.
However if you have evidence of paying a fee to reserve a plot with no conditions attached, then it seems to me the developer has breached a contract by not honouring the reservation.
You could not only demand the fee back, but also any consequential losses eg if you end up having to pay £10,000 more for a different property, you could claim that.
Make an interesting court case!
Are you sure there's nothing in a brochure or other documentation provided, defining the terms of a 'reservation fee'?
The fact that you say
implies that there was some definition of when the reservation would expire.......The builder gave us about 4 weeks to find another buyer0
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