Author Topic: Linden Cancelled My Reservation  (Read 2250 times)

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Mark25

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Linden Cancelled My Reservation
« on: April 02, 2016, 06:24:21 am »
I was after some advice regarding my recent reservation of a new build, built by Linden Homes.

We had reserved the house with our house sold (STC), however we then lost our buyer.
Linden then decided to offer the house to another party within our exchange period.
We signed a set of reservation terms and conditions with the house builder and paid Linden a £500 Reservation Fee.

Are house builders  allowed to do this?


New Home Expert

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Re: Linden Cancelled My Reservation
« Reply #1 on: April 02, 2016, 08:16:24 am »
You should have got a copy of the Consumer Code for Home Builders automatically when you reserved.
If you didn't, Linden breached requirement 1.2.
If you did, you will note that 2.6 covers the Reservation Agreement.
If it is cancelled by the builder, you should get the fee fully refunded plus any costs you have incurred (solicitors mortgage valuation etc)

However, looking at the Builder's "guidance" for compliance of the requirement, it clearly states:
"Once the Reservation agreement is signed, you should not sell or try to sell the Home to another buyer before the deadline date when the Reservation Agreement will end, or before the date when the buyer cancels the Reservation Agreement, whichever occurs first."
and
"You do not have the right to cancel a Reservation agreement."


Therefore Linden should not have cancelled your reservation and house builders cannot do this under their own Code which they have agreed to abide to..
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