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Property reservation fee
drexb5
Posts: 7 Forumite
Hello,
I paid £1k reservation fee for a property I want to buy. I am a first time buyer. And I had an agreement in principle. Unfortunately later down the line I was not able to secure a mortgage, on this basis can I get my reservation fee refunded.
I paid £1k reservation fee for a property I want to buy. I am a first time buyer. And I had an agreement in principle. Unfortunately later down the line I was not able to secure a mortgage, on this basis can I get my reservation fee refunded.
The terms of the contract said that the fee would not be refunded if I or the seller withdraw from the sale or a deal is not closed with 2 months ~
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Comments
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The terms of the contract said that the fee would not be refunded if I or the seller withdraw from the sale or a deal is not closed with 2 months ~What part of this isn't clear? You are withdrawing from the purchase.However, why did you have to pay a reservation fee in the first place? Was this a modern method of auction sale?0
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If it's a new build, you should have a reservation fee agreement. Perhaps you could put a photo of it here, in full, but with personal details blanked out.drexb5 said:Hello,
I paid £1k reservation fee for a property I want to buy. I am a first time buyer. And I had an agreement in principle. Unfortunately later down the line I was not able to secure a mortgage, on this basis can I get my reservation fee refunded.The terms of the contract said that the fee would not be refunded if I or the seller withdraw from the sale or a deal is not closed with 2 months ~No reliance should be placed on the above! Absolutely none, do you hear?0 -
No it is with an estate agent. I have been looking for a property for a while and they suggested to put a reservation fee so someone else does not take the property.NameUnavailable said:The terms of the contract said that the fee would not be refunded if I or the seller withdraw from the sale or a deal is not closed with 2 months ~What part of this isn't clear? You are withdrawing from the purchase.However, why did you have to pay a reservation fee in the first place? Was this a modern method of auction sale?
It is because i am not voluntarily pulling out but my inability to get a mortgage, despite the agreement in principle i got turned down at a later stage.0 -
Hmmm... having looked at that EA's website, personally, I would tend to steer clear of buying a property through them.
And I definitely wouldn't use them if I was selling. They seem to use the same business model as "quick sale" and "we buy any house" type companies.
Did they want to do a "back to back" sale to you? Is that why you couldn't get a mortgage?
(If it was a "back to back" sale - and they took £1000 off you without warning you that getting a mortgage would be very difficult with a "back to back" sale - that's almost certainly worthy of a complaint to the Property Ombudsman.
If that's the case, I think there's a reasonable chance that the ombudsman would tell them to give you your money back.)
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https://www.bettermove.co.uk/
These people?
I can't see anything wrong with the agreement above, I'm afraid. It might be worth asking a solicitor, if the reservation fee were larger, but probably not for £1k.
As Ed says, it depends whether there was something about the property that prevented you getting a mortgage?No reliance should be placed on the above! Absolutely none, do you hear?2 -
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Thank you, i will find out from the broker but i doubt there was anything wrong with the property.GDB2222 said:
These people?
I can't see anything wrong with the agreement above, I'm afraid. It might be worth asking a solicitor, if the reservation fee were larger, but probably not for £1k.
As Ed says, it depends whether there was something about the property that prevented you getting a mortgage?0 -
No it wasn't, it was so i dont lose the property to someone else.NameUnavailable said:The terms of the contract said that the fee would not be refunded if I or the seller withdraw from the sale or a deal is not closed with 2 months ~What part of this isn't clear? You are withdrawing from the purchase.However, why did you have to pay a reservation fee in the first place? Was this a modern method of auction sale?0 -
They sound like cowboys.0
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