New Build Home - Reservation Fee and potential rogue traders

Simon1878

kingstreet wrote: »

It doesn't say it to the consumer, it's in the rules the HCA demands the builders sign up to.

Phone your local HTB Agent if you want verification.

They've said they aren't able to help. I've emailed the HCA

Simon1878

kingstreet wrote: »

It doesn't say it to the consumer, it's in the rules the HCA demands the builders sign up to.

Phone your local HTB Agent if you want verification.

The HCA have responded to my query with this


Under the Help to Buy contract, the developer needs to refund the maximum £500 reservation fee if the buyers is not eligible for Help to Buy or is unable to obtain a mortgage.

Whilst the Buyer will need to confirm the detail of its appointed legal representative (who must be either a solicitor, a Chartered Legal Executive or a licensed conveyancer) the Buyer should not incur any legal fees until it has been accepted for the Help to Buy Initiative. Any reservation fee payable to the Provider should be no more than £500 and should be refundable if the Buyer is not accepted for the Help to Buy Initiative following the submission of the Property Information Form.
They would also have to refund the fee if the following occurred.

The Provider hereby agrees that in the event it enters into any contract with an Eligible Purchaser for the purchase of a Dwelling using the Help to Buy Initiative and the Provider is not eligible to receive Equity Loan Funding in relation to such transaction (whether as a result of a Provider Default or otherwise) then the Provider shall unconditionally release the Eligible Purchaser from such contract and return to them any deposit and/or reservation fee paid by that Eligible Purchaser.