house plot reservation fee.

[freddiew]

My husband and I put a reservation fee on a plot for a new house with a well know UK builder. We realised next day we had made a mistake, and cancelled a few days later. The form we signed stated the reservation fee was non refundable if the sale did not go through, but would be taken off the total price of the house if the sale did go through on completion. We have since been told we should have had a cooling off period and should get our deposit back. Can anyone tell me if this is correct or not?

[almcd007]

I think it all depends on whether the contract was signed at your house = Cooling off period or at their offices - No cooling off period. Your deemed to have read all the terms and conditions when you sign any contract and to have considered all the options and to pull out the next day after agreeing to buy and expecting some money back- some would say is a little naive.

[freddiew]

We did not actually expect any money back - but it is just that someone has told us we should be entitled to some, and I wanted to check if this was correct.

[almcd007]

You need to check all the wording of the contract that you signed. It doesn't look like - on the face of it - you would be entitled to it back. I also believe that cooling off periods are only relevant if a finance agreement was made. There's some similar points here :

http://www.theanswerbank.co.uk/Law/Question306 216.html