Developer has torn up reservation and still holding deposit?Make Text Bigger
In September 2018 we paid a substantial reservation fee to a Property Developer through a well known Property Investment Group to secure a new build apartment in Sheffield. The agreement we had with the developer and all the agents is that exchange of contract and stage payment would be made upon start of construction and final payment upon completion.
A couple of weeks ago we were informed by our solicitor that the developer had withdrawn papers and in effect torn up the reservation form despite having held the deposit since September and not returned the payment to us at the time of writing.
Does a reservation form and deposit mean nothing to these developers and agents?
What is the point of committing to a development signing up the reservation forms making a deposit if this can be torn up by the developer at will with no apparent consequences for them or formal mechanism to compensate our goodwill.
Is this acceptable behaviour from well known companies in the industry? In our mind this is very unethical and these unprofessional people need exposing. Is there any recourse open to us other than alerting? Perspective buyers through media etc. that they should not rely on reputation and to stay well clear of these organisations
Advice on how to take this forward to satisfactory closure is appreciated.
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