New build reservation fee refund

Ybe

If cancelling a reservation on a new build after the cooling off period and the reservation agreement says that in the event of ending the agreement, up to the full amount (£500) will be retained to cover the developer’s legal, administrative and/or overhead costs, does that basically mean it’s non refundable? Since the developers can just claim that their legal, admin and overhead costs are £500. 

I note the new homes quality code suggests the reservation fee should be refunded less any deductions as detailed on the agreement which I guess is another way of saying the same thing. 

user1977

I expect it's implied that the costs ought to have been reasonably incurred.

Ybe

user1977 said:

I expect it's implied that the costs ought to have been reasonably incurred.

Subjective though as hard to argue against any developer who will naturally claim that the full reservation fee amount was incurred. 

kingstreet

Threaten to complain under the Consumer Code if they don't refund half.

https://consumercode.co.uk/

Ybe

Playing devils advocate, could they argue that the deductions are the full amount as the conveyancing was very advanced and near exchange? If so, can this be argued against? 

Ybe

The agreement also said the full fee will be refunded in the event of having to pull out for circumstances beyond your control and you let the developer know within 14 days. What does that mean? Does that mean circumstances where you have no choice but to pull out as you don’t have any option to not to even if both parties make an effort to resolve?  For example, if you lose your job or your mortgage is declined due to your finances. 

user1977

Ybe said:

Playing devils advocate, could they argue that the deductions are the full amount as the conveyancing was very advanced and near exchange? If so, can this be argued against? 

Well, is it correct that the conveyancing was very advanced and near exchange? If so then it's almost certainly beyond £500. What are your own legal costs so far?

Ybe

user1977 said:

Ybe said:

Playing devils advocate, could they argue that the deductions are the full amount as the conveyancing was very advanced and near exchange? If so, can this be argued against? 

Well, is it correct that the conveyancing was very advanced and near exchange? If so then it's almost certainly beyond £500. What are your own legal costs so far?

About 1000. But due to the complexity, if I continue they’ll be adding a further £1000 

Ybe

Is £250 a reasonable deduction for abortive legal costs? 

user1977

If your own solicitor has clocked up £1000 then of course £250 is reasonable.

Hoenir

Ybe said:

user1977 said:

Ybe said:

Playing devils advocate, could they argue that the deductions are the full amount as the conveyancing was very advanced and near exchange? If so, can this be argued against? 

Well, is it correct that the conveyancing was very advanced and near exchange? If so then it's almost certainly beyond £500. What are your own legal costs so far?

About 1000. But due to the complexity, if I continue they’ll be adding a further £1000 

Why the complexity?