Is this the new form of gazumping ?

S

Schillachie

Guest
Hi There,

Query concerning booking deposit.
After paying a deposit of 4k to secure a house in phase 1 of a housing development where 40 houses were released with about half of them built, the selling agent rang me to tell me that the developer was reducing the number of houses to be released to 20 or so. As the house I selected was off the plans, I have been asked to select a different house or none.

This is very unprofessional if not unlawful. When I handed over the deposit, I was assured that the house was secured. I still have the receipt if that's any use.

As it is only 3 weeks since I paid the book deposit, and no contract was signed, do I have a leg to stand on ?

I would find this a little odd as if they can do this once, what's stopping them doing it again ?

Is this a form of gazumping as I'm sure the price of the house I selected when it is released will have gone up significantly.

Any advice would be grateful,

Schillachie
 
M

mf

Guest
Unfortunately ( from your perspective) it is a sellers market.


This is very unprofessional if not unlawful.
Unprofessional perhaps -unlawful, no.

When I handed over the deposit, I was assured that the house was secured.
An oral assurance from an estate agent is not worth the paper
that it isn't written on.

I still have the receipt if that's any use.
Does it say anything like "subject to contract"?, refundable?....

As it is only 3 weeks since I paid the book deposit, and no contract was signed, do I have a leg to stand on ?
No contract was signed. That is the legal kernel of the issue.
So no you have no grounds.

I would find this a little odd as if they can do this once, what's stopping them doing it again ?
Nothing.

Is this a form of gazumping as I'm sure the price of the house I selected when it is released will have gone up significantly.
Probably.

Sorry, its a bugger.

mf
 
R

rainyday

Guest
Just to keep things in context, the refundable booking deposit works both ways - the buyer can walk away at any time before handing over the full deposit.
 
D

dubinamerica

Guest
but is there any fall back for a buyer in this situation .. if really the plans had NOT been changed but instead these houses are now off the market ? you could go into the planning office to look at the planning file .. I don't know if this would then fall under the 'gazumping' but if you found out for sure that the plans had not been changed, it would give you something to approach the estate agent with. If however the plans have changed and the house you want is not going to be built, well try and get the best house that you can on the site and see if they'll throw in anything (probably not be always worth asking.)
 
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EAMONN66

Guest
there is nothing illegal about gazaumping. it may be unfair but the bottom line is that until the vendor signs their contracts, no deal exists.
 
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