Refund of Holiday Deposit - Help please!!

Sprinkles58

Hi,

We recently paid a sizeable deposit for a 3 month holiday abroad for two villas in Spain (the owner is based in this country) for late next year.

This was a retirement one off treat for ourselves.

We booked two villas with the same owner as one wasn’t available for the duration.

We have booked and paid for our flights separately.

Received an email to our horror last night that the owner has decided to put his properties on the market! He states that his intention is to sell the properties to buyers who will honour the bookings but that’s of no comfort to us!

Do we have a right to get our deposit back?

We feel in the circumstances we’d be best doing this as the worry of whether two new owners would honour our bookings would be too much!

user1977

There isn't (yet) any breach of contract. 

Which jurisdiction is the contract subject to? 

pinkshoes

The owner is running a business.

I would write to them stating that you would like a written guarantee that the two properties will be available for the booked duration. 

I would state that if they cannot guarantee this, then you would either like to cancel for a full refund, or they will be responsible for all extra costs incurred in securing suitable alternative if you arrive at your booked date and they are not available.

I imagine that your 3 month booking is going to be part of their selling ploy to show the properties bring in a good income... so perhaps they are indeed planning on selling to a business?

MattMattMattUK

Sprinkles58 said:

Hi,

We recently paid a sizeable deposit for a 3 month holiday abroad for two villas in Spain (the owner is based in this country) for late next year.

This was a retirement one off treat for ourselves.

We booked two villas with the same owner as one wasn’t available for the duration.

We have booked and paid for our flights separately.

Received an email to our horror last night that the owner has decided to put his properties on the market! He states that his intention is to sell the properties to buyers who will honour the bookings but that’s of no comfort to us!

Do we have a right to get our deposit back?

We feel in the circumstances we’d be best doing this as the worry of whether two new owners would honour our bookings would be too much!

I imagine that the contract will be under Spanish law, as well as it not being clear if youbooked with an individual or company, through an agent etc. which would complicate things. The likely legal position is that if you cancel (which is what you are proposing) then you will likely lose the deposit, if they cancel, then you get your deposit back. You could always ask the existing owner if they are willing to cancel and refund the deposit, they may be, but I am fairly certain you don't have that as a right.

cx6

if the owner and thus presumably the business is based in this country why would the contract be subject to Spanish law?

MattMattMattUK

pinkshoes said:

The owner is running a business.

I would write to them stating that you would like a written guarantee that the two properties will be available for the booked duration. 

I would state that if they cannot guarantee this, then you would either like to cancel for a full refund, or they will be responsible for all extra costs incurred in securing suitable alternative if you arrive at your booked date and they are not available.

I imagine that your 3 month booking is going to be part of their selling ploy to show the properties bring in a good income... so perhaps they are indeed planning on selling to a business?

The law doesn't work like that, the rental operation will be able to cancel before the booking date (exactly when will depend on the contract and probably Spanish law) and refund the deposit, but the person who has booked cannot imposed new conditions on them just because they feel like it. 

bris

You have no right at this point, it's like Talktalk selling to Sky, everything stays the same just new owner.

You do have other rights though, the contract works both ways, even in Spain who follow EU law.

If the owner does sell to someone who won't honour the contract then the original owner is in breach to you. You would be entitled to your deposit back plus any extra cost booking similar accomodation. it's a hassle but it's not one sided and there if you need it.

user1977

cx6 said:

if the owner and thus presumably the business is based in this country why would the contract be subject to Spanish law?

Because that's where the property is, and generally property rental etc is governed by the local law. 

pinkshoes

MattMattMattUK said:

pinkshoes said:

The owner is running a business.

I would write to them stating that you would like a written guarantee that the two properties will be available for the booked duration. 

I would state that if they cannot guarantee this, then you would either like to cancel for a full refund, or they will be responsible for all extra costs incurred in securing suitable alternative if you arrive at your booked date and they are not available.

I imagine that your 3 month booking is going to be part of their selling ploy to show the properties bring in a good income... so perhaps they are indeed planning on selling to a business?

The law doesn't work like that, the rental operation will be able to cancel before the booking date (exactly when will depend on the contract and probably Spanish law) and refund the deposit, but the person who has booked cannot imposed new conditions on them just because they feel like it. 

They're not imposing new conditions. Just a guarantee for the booking to go ahead as planned or a refund if there is any doubt over this. If at any point the owner realises the booking will not be able to go ahead then they need to refund.

MattMattMattUK

pinkshoes said:

MattMattMattUK said:

pinkshoes said:

The owner is running a business.

I would write to them stating that you would like a written guarantee that the two properties will be available for the booked duration. 

I would state that if they cannot guarantee this, then you would either like to cancel for a full refund, or they will be responsible for all extra costs incurred in securing suitable alternative if you arrive at your booked date and they are not available.

I imagine that your 3 month booking is going to be part of their selling ploy to show the properties bring in a good income... so perhaps they are indeed planning on selling to a business?

The law doesn't work like that, the rental operation will be able to cancel before the booking date (exactly when will depend on the contract and probably Spanish law) and refund the deposit, but the person who has booked cannot imposed new conditions on them just because they feel like it. 

They're not imposing new conditions. Just a guarantee for the booking to go ahead as planned or a refund if there is any doubt over this. If at any point the owner realises the booking will not be able to go ahead then they need to refund.

The demand of a "guarantee" that the booking goes is ahead is attempting to impose a new condition. There is always a doubt that a booking might not go ahead, especially with a global pandemic ongoing, that does not mean one can impose new conditions on bookings.

If the owner realises the booking cannot go ahead then yes they need to refund the deposit, but not just if there is a chance the booking might not be able to go ahead, because there is always a chance a booking might not be able to go ahead.

cx6

user1977 said:

cx6 said:

if the owner and thus presumably the business is based in this country why would the contract be subject to Spanish law?

Because that's where the property is, and generally property rental etc is governed by the local law. 

Thanks for that. I know that the landlord (UK based or not) would have to follow all Spanish taxation laws, as well as of course Spanish housing etc laws relating to short-term and holiday rentals. 

However, I am surprised that the actual contract terms such as cancellation conditions etc of a contract made in the UK between two UK people is subject to Spanish law. I guess you learn something every day!