House builder wont return reservation fee

dj03943

Good evening

I recently pulled out of the purchase of a new build property as I was not informed about a number of excessive covenants when I specifically asked if any existed. I only found out about them when all the contracts had been drawn up. I paid a £500 refundable reservation fee and the developer are now not responding to my calls or emails. I have also lost £300 to a solicitor for searches etc. which I would never have paid if they had been honest about the covenants up front, so I am also seeking some or all of this £300.

I would be grateful for any advice on how to proceed with this matter and if there are any template letters I could use to send to the developers head office?

Thanks

tacpot12

Were you given any sort of written agreement in exchange for the deposit? If not, were you told verbally about the fact that the deposit was not refundable, or any circumstances under which it would be refundable?

dj03943

I received no confirmation or written agreement for the reservation fee and I was only told verbally that it was refundable and therefore not given any circumstances (yes I am annoyed with myself for not obtaining any agreement at the time!)

Lucky_Duck_2

Assuming they are signed up to the code of conduct then they should return the deposit less any costs incurred

http://www.consumercode.co.uk/

tacpot12

If you haven't received any written agreement and were told the deposit was refundable, the developer should return it and you can sue for its return. If they are signed up to the code of conduct, I would review the code to see if you can make it work for you. If it doesn't apply, and you want to take them to court, you need to write a letter before action. Which? have some guidance and a template you can use:

https://www.which.co.uk/consumer-rights/letter/letter-before-small-claims-court-claim

If you got a receipt for the money, I would include a photocopy of this in with your letter to prove you paid. (If didn't get a receipt, you need to sharpen up: you don't someone in a sales office £500 to reserve a property for you without getting a receipt!) If the receipt says "refundable deposit", so much the better. It is says "non-refundable", you're not going to be able to claim anything. If it just says deposit, you will have to go to court to assert that the deposit was refundable.

The letter before action may result in them sending you a cheque as they won't want the hassle of going to court.