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  • FIRST POST
    • kbm271186
    • By kbm271186 11th Apr 18, 9:49 PM
    • 2Posts
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    kbm271186
    Non-refundable reservation fee
    • #1
    • 11th Apr 18, 9:49 PM
    Non-refundable reservation fee 11th Apr 18 at 9:49 PM
    I reserved a new build apartment and was asked to put a non-refundable reservation deposit of 500 down that was paid direct to the developer, Claremont Property Group. Unfortunately I now can!!!8217;t get the mortgage for the property.

    The reservation form states it is non-refundable, but the memorandum of sale doesn!!!8217;t mention it being non-refundable.

    Am I covered by the Consumer Code for Home Builders? I understand I may lose some money for admin fees etc, but 500 seems steep as the reservation form was only signed on 28 March 18.

    Thanks
Page 1
    • Mermaid89
    • By Mermaid89 11th Apr 18, 11:04 PM
    • 48 Posts
    • 21 Thanks
    Mermaid89
    • #2
    • 11th Apr 18, 11:04 PM
    • #2
    • 11th Apr 18, 11:04 PM
    I assumed you signed and thus agreed to the terms on the reservation form? When I reserved my new build the 500 fee reduced each week by 100 should I have pulled out, and is stated on the form as such. If yours states its not refundable then its not refundable, not sure why you'd think otherwise
    • AnotherJoe
    • By AnotherJoe 12th Apr 18, 9:29 AM
    • 8,967 Posts
    • 9,838 Thanks
    AnotherJoe
    • #3
    • 12th Apr 18, 9:29 AM
    • #3
    • 12th Apr 18, 9:29 AM
    Where in the consumer code does it mention non refundable deposits being refundable ?
    Or, that non refundable deposits aren't allowed?
    If that's in there somewhere I'd say you have a chance.
    • eddddy
    • By eddddy 12th Apr 18, 10:19 AM
    • 6,111 Posts
    • 5,894 Thanks
    eddddy
    • #4
    • 12th Apr 18, 10:19 AM
    • #4
    • 12th Apr 18, 10:19 AM
    Where in the consumer code does it mention non refundable deposits being refundable ?
    Or, that non refundable deposits aren't allowed?
    If that's in there somewhere I'd say you have a chance.
    Originally posted by AnotherJoe
    It says....

    CONSUMER CODE FOR HOME BUILDERS

    2.6 Reservation
    ...
    The Reservation fee must be reimbursed if the Reservation agreement is cancelled. The Home Buyer must be told of any deductions that may be made.

    Link: http://www.consumercode.co.uk/downloads/fourth-edition-2017/

    I reserved a new build apartment and was asked to put a non-refundable reservation deposit of 500 down that was paid direct to the developer, Claremont Property Group. Unfortunately I now can!!!8217;t get the mortgage for the property.

    The reservation form states it is non-refundable, but the memorandum of sale doesn't mention it being non-refundable.

    Am I covered by the Consumer Code for Home Builders? I understand I may lose some money for admin fees etc, but 500 seems steep as the reservation form was only signed on 28 March 18.

    Thanks
    Originally posted by kbm271186
    Has your builder signed up to the code? (All the larger builders have.)

    I think the intention of the code is that reservation fees should be refundable, less an admin fee - but that admin fee should be stated in the reservation agreement.

    It's worth challenging with the builder. (Maybe they will argue that they had 500 worth of admin costs.)

    FWIW, the memorandum of sale isn't relevant (unless they showed it to you before you signed the reservation agreement).
    • kingstreet
    • By kingstreet 12th Apr 18, 12:52 PM
    • 33,150 Posts
    • 17,895 Thanks
    kingstreet
    • #5
    • 12th Apr 18, 12:52 PM
    • #5
    • 12th Apr 18, 12:52 PM
    500 seems a low reservation fee. Is this a HTB case?

    If it is, the developer signs up to refunding the fee if the purchase can't proceed.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • kbm271186
    • By kbm271186 12th Apr 18, 1:39 PM
    • 2 Posts
    • 0 Thanks
    kbm271186
    • #6
    • 12th Apr 18, 1:39 PM
    • #6
    • 12th Apr 18, 1:39 PM
    500 seems a low reservation fee. Is this a HTB case?

    If it is, the developer signs up to refunding the fee if the purchase can't proceed.
    Originally posted by kingstreet
    Thank you for your reply.

    Yes, it was a HTB case. I have been looking for HTB developer T&Cs , but can't seem to find them. Any ideas? Thank you
    • kingstreet
    • By kingstreet 12th Apr 18, 2:34 PM
    • 33,150 Posts
    • 17,895 Thanks
    kingstreet
    • #7
    • 12th Apr 18, 2:34 PM
    • #7
    • 12th Apr 18, 2:34 PM
    It's part of the terms and conditions the developer signs-up to when they join the HTB scheme. Phone your local HTB Agent and ask them.

    https://www.helptobuy.gov.uk/equity-loan/find-helptobuy-agent/
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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