Even if your reservation agreement says the fee is non-refundable, you may still have options.
A practical first step is to choose (or challenge) developers who follow the NHBC Consumer Code,
which expects reservation fees to be clearly documented and refunded (subject to any
permitted deductions).
There you are: after endless time and effort, you finally find your ideal off-plan, state-of-the-art pad.
You put down your hard-earned deposit to buy a home, only to find that you’re not moving in by Christmas as you had hoped.
Your estate agent tells you there’s a problem — the developer’s contractor went bust some time ago and you cannot move in until
spring the following year.
Hang on, you think — I wasn’t told that… where’s the paperwork? What’s this… a reservation agreement…
what does it say… deposit not refundable if purchase cancelled — errrr!
Sure, the developer has politely dismissed your request for a refund, and your signed contract says “non-refundable”.
But is there a way around this? Just maybe…
How to get around a non-refundable reservation fee on a new build
“Look for developers that show a willingness to adopt fair practice and have signed up to the NHBC Consumer Code.”
Industry regulation has long been an initiative taken – to its credit – by the National House Building Council (NHBC).
Whilst not something you would necessarily find bandied around by lawyers in a courtroom, the benefit of the
Consumer Code lies in its adoption by registered builders and home warranty providers – of whom there are many.
The Consumer Code mandates a range of requirements connected with the purchase and sale of new build homes.
One of these is ensuring that any reservation fee paid is clearly documented and refunded, subject to any allowable deductions.
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