We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
New Build deposit - reservation cancelled after 18 hours
Options

mat1964
Posts: 192 Forumite

On 27/10 at 5pm I sent a £2k deposit to a home builder as a reservation fee. I had not seen or signed the reservation agreement at that time but was encouraged to send the funds by the Estate Agent as others were interested. The next morning, my buyer pulled out so I had to pull out. The Agent told me given it was so quick and I had not signed the agreement, I would receive a refund in full. However, the developer has only refunded half of it, so I am out £1000.
I can't see how this is fair. The developer would not have incurred any costs during the very short period they had the funds.
I am wondering whether to go to the small claims court - given the agreement was never signed, it was less than 24 hours (maybe cooling off laws apply?). Any thoughts welcomed.
I can't see how this is fair. The developer would not have incurred any costs during the very short period they had the funds.
I am wondering whether to go to the small claims court - given the agreement was never signed, it was less than 24 hours (maybe cooling off laws apply?). Any thoughts welcomed.
0
Comments
-
A verbal contract can be binding. Sending teh funds would be a pretty good indication that you were agreeing.0
-
Have you asked the developer on what basis they have retained half? I would expect it to be all or nothing.No free lunch, and no free laptop0
-
Write a letter asking for your money back giving them a time frame say 7/14 days.
If No reply then a " Letter before action " letter.
Follow the small claims court guidelines and Good luck on getting the full deposit returned.0 -
dimbo61 said:Write a letter asking for your money back giving them a time frame say 7/14 days.
If No reply then a " Letter before action " letter.
Follow the small claims court guidelines and Good luck on getting the full deposit returned.0 -
mat1964 said:On 27/10 at 5pm I sent a £2k deposit to a home builder as a reservation fee. I had not seen or signed the reservation agreement at that time but was encouraged to send the funds by the Estate Agent as others were interested.
I am wondering whether to go to the small claims court - given the agreement was never signed...
If there was no enforceable contract, what was the £2k for?
If the developer turned round and said "What reservation? We don't have any sign paperwork from you", would you shrug and say "Oh, yeh. We never did have any kind of enforceable contract, hey-ho"?
You're wanting to cancel the contract because your buyer has pulled out. Can you find another buyer within a timeframe acceptable to the developer? Will they PX your old property?0 -
dimbo61 said:Write a letter asking for your money back giving them a time frame say 7/14 days.
If No reply then a " Letter before action " letter.
Follow the small claims court guidelines and Good luck on getting the full deposit returned.0 -
mat1964 said:dimbo61 said:Write a letter asking for your money back giving them a time frame say 7/14 days.
If No reply then a " Letter before action " letter.
Follow the small claims court guidelines and Good luck on getting the full deposit returned.
The reason I ask is I can imagine the developer will claim that upon the estate agent letting them know you've paid a deposit, they rejected all the other applicants so have been effected.
Plus, I'm siding with AdrianC's views, especially with regards to claiming that there is no contract... what would you say the 2k was for then? Let's not forget that this is literally what deposits are intended for, they could have tried to keep it all.Know what you don't0 -
Check if your developer is signed up to
https://www.consumercodefornewhomes.com
(or check if they are signed up to similar code and see what that code says)
If they are then they are bound to the following:The Buyer may cancel the Reservation Agreement during the agreed reservation period in which case the Reservation fee must be refunded by the Developer within 14 working days of the date of notice of cancellation given by the Buyer. The reservation period may be extended by mutual agreement between the Buyer and Developer. If the deadline date is not extended and contracts have not been exchanged, the Reservation Agreement automatically expires.
The Reservation fee must be refunded in full if the Buyer wishes to cancel the reservation for any reason within seven working days of signing the Reservation Agreement.0 -
The good news is that, if they intended to hold you to the contract, the developer would not have refunded £1K. I think you've got off very lightly.No free lunch, and no free laptop0
-
macman said:The good news is that, if they intended to hold you to the contract, the developer would not have refunded £1K. I think you've got off very lightly.
Anyway, much to my surprise, so even though I have not received any additional correspondence from the developer, the additional £1000 just dropped into my bank account, so situation resolved. Thanks for the replies.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards