Chargeback against homebuilder? Or S75?

lsl86

Hi Experts!

I've found myself in a situation where I've paid a total of £5320 to Bellway Homes for a house I might now not actually be allowed to buy.
So here's the story. I put my house on the market with Purple Bricks back in January, and received an offer pretty quickly. Based on this, I set out to find a house to move to, and settled on a new build from Bellway Homes. It looked lovely. I got my mortgage all organised. Got my decision in principle, and then later the full offer came through, no problem at all. I paid Bellway a £1000 "reservation fee" and £4320 for a granite counter-top to be installed in the kitchen. These were paid on my credit card.

Well, disaster struck. Our buyer pulled out due to their financial situation. Bellway found out by speaking to Purple Bricks behind my back, who told them everything! (I think there's a data protection issue there, but that's beside the point). Bellway have now told me that I have to find a buyer within two weeks, otherwise they're pulling the house, and everything I've paid so far will not be refunded. They're just going to help themselves to almost £6k of my money, and I'll have naff all to show for it. I'm re-marketing the house, and have a viewing coming up, but needless to say I'm not happy about this situation!

Since I'll (potentially) be walking away from this situation with nothing from Bellway, I think I have a case for a chargeback / section 75 claim. My question is - how likely am I to get my money back here, and which sort of claim would you make - chargeback or S75?

Advice appreciated!
Thanks in advance.

[Deleted User]

There's no case for a chargeback or s75 unless Bellway are breaching the contract in some way. Certainly the reservation fee will be lost if you can't complete on the house.

What does your contract with term say regarding the granite top and the purchase of extras? 

[Deleted User]

Presumably the countertop would be yours - either way?
So it's 1k and buying an now unwanted countertop. 

lsl86

I mean I'd take the countertop if they'd let me have it. They won't. They want me to pay for it, but say I can't have it. Seems wrong to me?

lsl86

They've said I would be entitled to a partial refund on the reservation fee, so I'm not too worried about that, but surely they can't make me pay for a countertop in a house that they won't let me buy? They've set an arbitrary time limit after which they're just going to take my countertop. At that point, I don't think I should have to pay for it.

[Deleted User]

They can, depending on the contract and what stage the build is at.

Where is the countertop at the moment?  You're going to have more of an argument if it's in a shed, than if it's installed in the kitchen.

lsl86

Not sure where the countertop is at the moment or what they've done with it. I also don't think there was a contract, at least that I've seen.
The house was built before I even met with them. Just internal decorating left to do. They didn't build it for me, as such. The let me choose some of the tiles, carpets, etc.
If they insist that the countertop is "mine", then surely I can insist on having it? I should be able to get it removed? Or are they going to insist that it's mine, but that they get to take it? It's gotta be one way or the other, right? Either it's mine, in which case I want it, or it's theirs, in which case I shouldn't pay for it.

[Deleted User]

lsl86 said:

 It's gotta be one way or the other, right? 

No. It's gotta be whatever's laid down in the terms.

If it's installed, which is sounds as it it is, the very best you can hope for is to pay them to remove it, deliver it to you and reinstall an alternative counter-top.  They're not going to let you come in with a screwdriver and take it yourself.

But I really would start by digging out your paperwork. That'll contain all sort of useful information for your plight.

lisyloo

Are they actually stopping you buying the house?
Is it the fact that you haven't got the money (or a confirmed buyer in lieu of the money) that is stopping you buying the house?

lsl86

They were happy for me to buy the house, but they've done some digging, calling around to my estate agents etc, and discovered that my buyer has dropped out of the transaction. Based on that, they've imposed a new 2-week time limit on me to get a new sale, and said that if I don't, they'll take the stuff I've paid for and I won't be able to buy the house any more.

The 2-week time limit definitely wasn't in any paperwork.

born_again

Maybe chargeback, if you can prove the funds were for the countertop & not the house. S75 is based on total purchase price, which will be the house, as you made a deposit against it. Which I will hazard a guess at over £35K?

Do Bellway not offer P/X on your build?