Holding Fee Refund?
3 years ago | 4 comments
Estate Agent will not refund reservation deposit?
9:55 AM, 2nd February 2023, 3 years ago
11
Hello, I paid a reservation deposit of £1,000 for BTL property for it to be taken off the market.
I commenced all legal work and applied for a mortgage with the first lender and they down valued the property by about £10,000. I couldn’t fund the cash difference, so I made this clear to the agent that I will have to renegotiate and apply through another lender. The agent suggested not applying through another lender (due to fast changing conditions in the market some months back) but it was the only option I had, with the hopes of getting a higher valuation or lose my deposit.
Second lender came back with an even lower valuation and so I withdrew my offer as I couldn’t proceed due to funds.
All this happened when we were a couple of weeks from exchange.
Now the agents are refusing to refund the deposit as I withdrew from the sale. The agents have been very slow throughout the whole process which has cost time and money.
The buyer agreement pretty much said deposit was only refundable if property is unmortgageable, the seller withdrew from the sale, or on completion.
Any suggestions on how approach this and get my money back?
Thank you,
Tega
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Are letting agents playing fair with their fees?
3 years ago | 25 comments
House prices and buyer activity continue to fall
3 years ago
Member Since August 2016 - Comments: 508
1:14 PM, 2nd February 2023, About 3 years ago
What was the contract between you and the agents?
Member Since January 2015 - Comments: 1442 - Articles: 1
1:18 PM, 2nd February 2023, About 3 years ago
Did you read the paperwork re reservations as many are non refundable .
Research the legal difference between a holding deposit and a reservation fee. Again check your paperwork to see what it states
Member Since February 2022 - Comments: 1
2:19 PM, 2nd February 2023, About 3 years ago
If you have signed a reservation agreement with the terms mentioned above, you are at a loss.
There is no refund due to you.
I would take this as a lesson to ensure you read all paperwork and get legal advice before signing any paperwork.
Member Since September 2021 - Comments: 213
3:45 PM, 2nd February 2023, About 3 years ago
Is there a confusion between “market value” and “valuation for lending purposes”?
It would be rare for the two to be the same.
New Build properties have or used to have finance arranged.
The two would coincide, and it came down to your affordability.
Was this a scam or a cosy relationship or just market captalism?
Member Since January 2020 - Comments: 1102 - Articles: 1
4:04 PM, 2nd February 2023, About 3 years ago
I don’t understand why you think you should get your money back. The deposit was repayable on completion and you failed to complete.
Member Since July 2013 - Comments: 1264 - Articles: 1
4:15 PM, 2nd February 2023, About 3 years ago
I don’t understand why you would pay such a deposit, I have never been asked for one except for a new build
Member Since September 2021 - Comments: 213
4:23 PM, 2nd February 2023, About 3 years ago
Reply to the comment left by Puzzler at 02/02/2023 – 16:15
To prevent gazumping, and to have reasonable certainty of completion.
Member Since February 2023 - Comments: 1
4:13 PM, 3rd February 2023, About 3 years ago
We at Gazeal.co.uk provide a reservation agreement for the UK market, this has various standard conditions including a refund should the mortgage offer not be forthcoming due to no fault of the person applying. In the case of a down valuation, this would have resulted in a full refund.
Member Since September 2021 - Comments: 213
5:18 PM, 3rd February 2023, About 3 years ago
Reply to the comment left by Bryan Mansell at 03/02/2023 – 16:13
In that case, is it fair to your client, the seller? You have taken it off the market. Now you will put it back.
Does your client, the seller, states the market price is the valuation figure for lending for all lenders?
Member Since February 2022 - Comments: 71
6:36 AM, 6th February 2023, About 3 years ago
Based on the limited facts…
The property was mortgageable. You just weren’t able to borrow as much as you needed to.
Seems pretty clear to me.