Any Advice - Deposit Return?

CMum · 26 Mar 2008

We purchased a house from plans in Oct 2006 which was due to be completed in December 2007. The EA approached us (telling us we were very approachable and nice!) last year asking us to move to a different location within the estate. The proposed alt house was a detatched (our original choice was semi detached) and the EA said the developer would pay our stamp duty. When we asked why the developer would move just us, the EA said he was "just like that". The garden in the alt house was smaller and we didnt like the location of the house in the estate so after long deliberations we decided against the change in house. The EA then said that because we werent going with the "great" offer tabled, we had held up the developers revised plans for the estate which were based on us moving from our original house. The EA then advised that none of the houses purchased on the back row were to be completed as apparently everyone from the back row had been approached to move elsewhere within the estate. The last contact we had with the EA was that our original choice of house would be finished and that the developer would "put a fence" around it. We want to pull out now as we dont want to live on the back row on our own (!) but will most likely lose our 10% (substantial) deposit. Anyone any advice???

LDFerguson · 26 Mar 2008

Re: Any Advice - Deposit Return????

If you have paid your 10% deposit and exchanged contracts, your solicitor will have a copy of the terms and conditions of the contracts. What does your solicitor advise?

CMum · 26 Mar 2008

Re: Any Advice - Deposit Return????

He thinks we may have a case as what is tabled now is not what we signed up to. The fact is, if we move in, we will be the only ones living in that row of houses and the developer is not continuing with the rest of the estate for the moment so we'll have to face a building site in the meantime - fabulous! The leafy green views with a driveway and neighbours that we initially expected are a thing of the past - thats the argument we may have. That and the fact that the EA wasnt honest with us as to why he wanted us to move in the first instance!

MOB · 27 Mar 2008

Re: Any Advice - Deposit Return????

Your builder is probably entitled to change his plans\layouts\house types in the rest of the estate. He is probably entitled to take as long as he likes in building houses which are not yet sold. However, unless, following your initial discussions, he has already gone ahead and built the house that you insisted on, he will surely be happy to let you out of the contract and give you back your deposit, in order to facilitate his altered plans. So don't panic. Just go back and renegotiate.

Of course, if the builder has already honoured his part of the original deal and built this house for you, then it seems to me that you are probably stuck with it - but that was your choice.

In general, a house buyer does not get a contractual right to say how the rest of the estate will be finished. Obviously, it must comply with planning, but the builder is free to apply for revised planning (and of course you are free to object). Also, the builder usually undertakes to have the roads and services (including open spaces) taken in charge, and to maintain them in the meantime, so if this is not done, you could in theory sue the builder. However, it is perfectly normal for an estate to take several years to finish, and I think that such a case would have to demonstrate that the builder's delay was beyond all reason - so this is unlikely to present a solution.

CMum · 27 Mar 2008

Re: Any Advice - Deposit Return????

Thanks for that - it seems positive on some aspects and negative on others!! The exterior of all 10 houses on the back row have been erected but they are simply shells, no interiors have been completed. Maybe we do have some hope with the developer who, by all accounts is quite easy to deal with, but we have found our dealings with the EA tiresome and pedantic. To be honest the good has been taken out of the whole move and we arent prepared to settle for what is currently tabled so fingers crossed we will have some luck with the return of our deposit.

Thanks for your advices though!

ben10 · 28 Mar 2008

Re: Any Advice - Deposit Return????

In my experience you will have a tough time getting your money from any builder, you may be entitled to it but they will make you wait!
I bought an appartment in march 2006 which was to be ready a year later. Here i am 2 years later & i have still not moved in due to a window which was on the original plans not being on the finished appartment. Now this would have been acceptable if the builder had of come to me & informed me of the change to the plans while building & offered me a way out but they tried to pass it off as nothing, now,if you bought an ipod & the earphones were not in the box would you bring it back??
The builders have had as little contact with me as possible & are still holding a 30,000 deposit, the contract was up in november & the way it looks i will be a while waiting for my money even though the builder is in breach of contract!
My advice would be that if you are happy with the new house on offer take it otherwise you will be a long time waiting on your money back, thats if you get it back!!

CMum · 28 Mar 2008

Re: Any Advice - Deposit Return????

Thanks Ben10. I'm surprised (and sorry) to hear that you havent had your money returned. Its seems strange that when you are looking for a clause to get out of a contract its all in favour of the developer and you are now outside of the contract time and its STILL in favour of your developer. To be honest, I'm not happy with what they are offering at this stage, I'm going to hold out for the completion date (which is end of April) and see what happens then, although your case makes me think I'll be sitting waiting for my money back for a long time to come! Thanks again and good luck with your own situation.

foxylady · 9 Sep 2008