Booking deposit not refunded

evilmf

Hi,

my first post here -- after a couple of months reading the very interesting discussions while hunting for our future home

We were in the process of buying a house and we went sale agreed at the end of October 2013. I have immediately engaged with a solicitor, the bank has organized the property valuation and I have got my engineer to do a structural report on the property.

We were told that all going well we were able to close before Christmas. Early December I've started to get worried as my solicitor hadn't received the contracts from the sellers solicitor yet. The EA basically wasn't answering my calls and was very difficult to get updates.

My worries were appropriate, as the EA said in mid December that the sellers bank refused to allow them to sell the house for the agreed price. Apparently they were in negative equity, and it was never mentioned to me before (actually in every discussion I had with the EA, he was very positive on getting the deal done very quickly, aiming to sign contracts before Christmas!).

We were clearly gutted, and I've lost a fair amount of money (solicitor, valuer, engineer). The EA said the seller offered to pay for the engineer, as they were sorry for what happened, and that they were going to immediately give me back my deposit (around 2% of the agreed price). This was mid December.

Going forward to today -- I still don't have my booking deposit money, and I am very worried that I won't see it back. The EA every time says is going to do the transfer "today or tomorrow", but the money hasn't materialized yet.

What are my options? I guess getting my solicitor on the issue is the first step, followed maybe by a complaint filed with the PSRA ?
I clearly have the receipt for my deposit.

Are there any steps I should have taken before transferring the money to the EA? We are looking to purchase a different property but I don't want any of this to be happening again if I can avoid it!

Cheers

whippet

call in to the EA's office and take a seat and refuse to budge until you either get a cheque or proof that the money has been transferred. And while you wait make sure that you explain to everyone else who walks in why you are waiting ...

Ray Palmer

I get why you are worried but you will get it back. Making a scene in their office would work but not exactly a mature behaviour. Call in and wait but don't make a scene.

evilmf

Thanks,

will certainly call in the agency; is not exactly around the corner but I guess will have to do it. It is a very small agency, so also if I wanted there is no point in making a scene..

Cheers

Oral Surgeon

My solicitor worded a letter to go with the booking deposit... Basically saying that its fully refundable, but in legal speak.....

D3PO

Ray Palmer wrote: »

I get why you are worried but you will get it back. Making a scene in their office would work but not exactly a mature behaviour. Call in and wait but don't make a scene.

who cares if its mature or not. The EA or the sellers solicitor has their deposit is earning interest off it and has no right to have it and the OP is being pawned off.

If they cant be mature in their business dealings and return the deposit in a timely manner then I see no reason why the OP shouldn't go in make a scene and negatively impact the EA's business. I for one would want to know if I were a prospective client in that office at that time.

Ray Palmer

D3PO wrote: »

who cares if its mature or not. The EA or the sellers solicitor has their deposit is earning interest off it and has no right to have it and the OP is being pawned off.

If they cant be mature in their business dealings and return the deposit in a timely manner then I see no reason why the OP shouldn't go in make a scene and negatively impact the EA's business. I for one would want to know if I were a prospective client in that office at that time.

Yes you should always lower how you act if somebody doesn't act correctly. It isn't at all possible that it is the accounting firm dragging their feet and the EA instructed them to issue a payment return several times.

As long as you are being reasonable why not simply threaten them? :rolleyes:

D3PO

Actions cause reactions.

Last time I checked raising your voice to achieve what you set out to achieve wasn't classified as lowering yourself, not everybody is as meek as you evidently.

If you think for one minute I also believe you have never raised your voice with a tenant then your sorely mistaken so get off your soapbox.

paddydriver

Ray Palmer wrote: »

I get why you are worried but you will get it back. Making a scene in their office would work but not exactly a mature behaviour. Call in and wait but don't make a scene.

We are talking cold hard cash here! Does not matter whether its mature behaviour or not - the person wants their cash back and the estate agent is leading them on a merry dance. Whatever is required, within the law, to get that money back should be done.

OP - get yourself down the estate agents and wait for your money. Best of Luck! Hope all works out for you.

paddydriver

Ray Palmer wrote: »

Yes you should always lower how you act if somebody doesn't act correctly. It isn't at all possible that it is the accounting firm dragging their feet and the EA instructed them to issue a payment return several times.

As long as you are being reasonable why not simply threaten them? :rolleyes:

You must not know much about running a business. The estate agent is a small business just like any other. They don't have an "accounting firm" running their bank account. They will have an in house person that simply needs to logon to their online banking and send across the payment. They are taking the mick here.

Ray Palmer

paddydriver wrote: »

You must not know much about running a business. The estate agent is a small business just like any other. They don't have an "accounting firm" running their bank account. They will have an in house person that simply needs to logon to their online banking and send across the payment. They are taking the mick here.

I run my own business and use an accounting firm. Many small companies use accounting firms rather than hire a full time accountant or use in-house people to manage accounts. Don't let reality interfere with what you think should happen

zac8

I had a sale fall through recently with a small agency - one woman operation. Got my deposit back by cheque the next day. What's happening here to the OP is indefensible.

evilmf

Thanks a million for all your comments.

I've called into their office this morning, as you have suggested. They have given me a cheque with the full amount for the deposit, which I have already lodged to my account. No real explanation on why the promised bank transfer never materialized from mid December, but anyway...

Hopefully the cheque will clear without issues (will know in three days).

I must admit I wasn't prepared to have to fight to get back the money (especially because it is not our fault if the purchase wasn't completed!). I thought was a mere formality to get the deposit back immediately...

I've only got the deposit back; the cost of the engineer will apparently be refunded by a check sent directly from the seller -- not holding my breath for that. I know he has no obligation to pay for it, but he said was going to and I hope will keep his word.

Cheers

paddydriver

Ray Palmer wrote: »

I run my own business and use an accounting firm. Many small companies use accounting firms rather than hire a full time accountant or use in-house people to manage accounts. Don't let reality interfere with what you think should happen

Reality is that the estate agent was delaying paying back the booking deposit and was just stringing out the OP. This may be the "reality" of what happens in the real world in business to business transactions - i.e. possibly in your business and definitely in mine - but for business to consumer it is bad form and OP has every right to be seriously peeved here and was entitled to take whatever action they deem acceptable in order to retrieve their money.

As it turns out the suggestion to go into the office and look for their money has worked so all has ended well and OP is happy:)

evilmf

Hi,

just an update on this, as the problem wasn't solved last Friday.

The cheque was not paid by the bank; I have got a letter yesterday with the unpaid check attached (with a big stamp "Refer to drawer" on it). So obviously I was furious and very worried!

I have been immediately in contact with the EA again, and he proposed to get a bank draft in my name today. He opted for a bank transfer to my account instead: I can see the money on my account but it is not available to me yet (I thought I should be able to avail of it immediately as I use the same bank as the EA). I was on the phone with my bank and they said that the bank transfer should be ok and I should have the money fully available tomorrow.

I was just about to call my solicitor when I got the call from the EA saying that the bank transfer was done. I will decide tomorrow if to lodge a complaint with the PRSA as there is no real justification for the stress and time wasted to get back MY money.

Thanks for your advices -- just wanted to give you this update as apparently not always the story finishes when you get a cheque from the EA client accounts (I suppose it is completely illegal to use the funds on that accounts before the transaction has been completed, but that's apparently what has happened.)

Cheers

ABajaninCork

I was following this thread, but did not post as I didn't feel able to comment. Well done on being persistent in recovering YOUR money. And yes - absolutely I would make a complaint with the PRSA as the EA was less than professional in handling your booking deposit.

I'd also be very wary about dealing with them again, no matter how nice the house was!

TheDriver

I thought all deposits are to be lodged to a separate account and not utilised including being able to be refunded a day later....

Tigger

TheDriver wrote: »

I thought all deposits are to be lodged to a separate account and not utilised including being able to be refunded a day later....

should go into a client account
therefore shouldn't of bounced
i'd report them if it had been me