Deposit rejected after two weeks

9

90210

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HI

A pal of mine owned a property 1 bed apartment , he then decided to buy another two bed apartment and rentr his own out.

He cracked a deal with the builder and the leased out his own 1 bed and moved back into his uncles for a few weeks , he then sent a cheque for 17k to the builder as a deposit. All went well until after three weeks the builder told him that the property was now not for sale. Does he have any entitlement for compensation as his own property is now let out for 1 year and he is rightly shagged ? The builder did not cash the cheque , thats what alerted my pal .
 
Yes he did Rainy, The property was brand new, and I was purchasing it from the builder as a new property. I sent the cheque and a letter stating the deal to his solicitor.

My issue is, if I pulled out of the deal, he would surely keep my deposit but he has pulled out and according to my solicitor there is nothing I can do. I have missed out on other properties, rented out my own property for one year and have been without the funds to place a deposit on another property. Is the law this imbalanced?
 
My issue is, if I pulled out of the deal, he would surely keep my deposit but he has pulled out and according to my solicitor there is nothing I can do. I have missed out on other properties, rented out my own property for one year and have been without the funds to place a deposit on another property. Is the law this imbalanced?


There were no signed contracts. There is no legal deal until contracts are signed by both parties and an agreed deposit is paid. If you had pulled out, you would have been entitled to your deposit back.

Property is tricky - timing is difficult - but I would always advise a client not to take significant steps until the deal is secure.

I don't think the law is imbalanced - you could have withdrawn at any time up to exchange of contracts.

mf
 
Under what basis would have I been entitled to my deposit back? The whole principle of a deposit is to ensure completion or surety of sale. If the proposed purchaser fails to complete the deal the deposit is lost unless it is clearly stated in a written contract.The deposit is this case was never refundable , as far as i am concerned if you place a deposit and walk away , be prepared to lose your deposit.



If I was selling a property or any item for that matter, say a car. I took a deposit from the buyer and he then tells me two weeks later that he does not wish to go ahead with the deal. Even though their is no written contract in place, I would still be entitled to keep the deposit as I have lost other opportunity to sell the item to others.



In this instance I have been deprived of the opportunity to proceed with this purchase. An agreement was reached and the agreed deposit paid. As far as I am concerned the cheque and receipt of same is offer and acceptance.The law as far as i am concerned offers no remedy.
 
Was there a written contract enforceable in law?


"In this instance I have been deprived of the opportunity to proceed with this purchase."

Unless there was a written contract then the builder has no obligation to you. You opted to take certain steps and you are out of pocket as a result but you have no recourse against the builder.

"An agreement was reached and the agreed deposit paid. As far as I am concerned the cheque and receipt of same is offer and acceptance"

As above. This is not a(n enforceable) contract.


"The law as far as i am concerned offers no remedy."

If you had signed contracts you might have had a remedy.

There is no legal deal until contracts are signed by both parties and an agreed deposit is paid.

mf
 
90210 said:
Under what basis would have I been entitled to my deposit back? The whole principle of a deposit is to ensure completion or surety of sale. If the proposed purchaser fails to complete the deal the deposit is lost unless it is clearly stated in a written contract.The deposit is this case was never refundable , as far as i am concerned if you place a deposit and walk away , be prepared to lose your deposit.



If I was selling a property or any item for that matter, say a car. I took a deposit from the buyer and he then tells me two weeks later that he does not wish to go ahead with the deal. Even though their is no written contract in place, I would still be entitled to keep the deposit as I have lost other opportunity to sell the item to others.



In this instance I have been deprived of the opportunity to proceed with this purchase. An agreement was reached and the agreed deposit paid. As far as I am concerned the cheque and receipt of same is offer and acceptance.The law as far as i am concerned offers no remedy.
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until the contracts are signed (and neither side can pull out) the deposit is just a sign of good faith , and will be refunded in the case of either side putting out for an reason (or without a reason)
 
So what if i pulled out of the property sale , would i be entitled to get my deposit back ? You both say i would but why ? I understand what you are both saying but in life we make contracts every day whether they are implied , verbal or written.

It just seems to me that a retailer or a builder can retain a despoit and then pull out of the deal, without recourse. When you state that it is the same for both sides , it is not , as i paid the funds on the basis that the deposit was non refundeable. We will agree to disagree on this one gents , as far as i am concerned a deposit is a payment given as a guarantee that an obligation will be met , if the obligation is not met you lose your guarantee. Sorry but i just feel it is a grey area for purchasers.
 
90210 said:
So what if i pulled out of the property sale , would i be entitled to get my deposit back ? You both say i would but why ? I understand what you are both saying but in life we make contracts every day whether they are implied , verbal or written.

It just seems to me that a retailer or a builder can retain a despoit and then pull out of the deal, without recourse. When you state that it is the same for both sides , it is not , as i paid the funds on the basis that the deposit was non refundeable. We will agree to disagree on this one gents , as far as i am concerned a deposit is a payment given as a guarantee that an obligation will be met , if the obligation is not met you lose your guarantee. Sorry but i just feel it is a grey area for purchasers.
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yes , you would 100% get your deposit back...

Property is different, until contracts are signed there is no commitment....
 
Now I'm confused - the original post said

"A pal of mine owned a property 1 bed apartment , he then decided to buy another two bed apartment and rentr his own out."

Then you went onto say

" I was purchasing it from the builder as a new property. I sent the cheque and a letter stating the deal to his solicitor."

So who was actually buying - you or your pal? Did the purchaser involve their own solicitor in the purchase? If so, what is the purchaser's solicitor's advice?
 
RainyDay said:
Now I'm confused - the original post said

"A pal of mine owned a property 1 bed apartment , he then decided to buy another two bed apartment and rentr his own out."

Then you went onto say

" I was purchasing it from the builder as a new property. I sent the cheque and a letter stating the deal to his solicitor."

So who was actually buying - you or your pal? Did the purchaser involve their own solicitor in the purchase? If so, what is the purchaser's solicitor's advice?
Click to expand...

Everyone who asks about something for a friend really means themselves... its best just to overlook the I/him type mistakes...
 
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