Last August I put an offer in for a flat but it fell through because of an issue with the tenure. The flat was marketed as having a share of the freehold, but one of the freeholders was missing so they couldn’t transfer the ownership to me.
My solicitor therefore advised me against purchasing the property. Unfortunately, I had fallen into the trap of paying the estate agent a £1,000 deposit which was supposed to be subject to survey and contract.
The estate agent promised to repay the deposit last September, but failed to do so. After several calls and emails I finally reported it to the Property Ombudsman Service. It ruled in my favour and the estate agent agreed to pay me £1,100, including a £100 goodwill gesture, within 28 days: 40 days on, I still haven’t received anything. TH, Stourbridge, West Midlands
Pre-contract deposits, levied on prospective buyers when an offer is made on a property, are a dubious side effect of a booming property market.
The Property Ombudsman Service’s code of practice states that, as a rule, agents shouldn’t impose them, since they have no legal validity – although it then goes on to stipulate provisions for agents who choose to defy the guidance.
It just so happens that as soon as I contact the ombudsman about your case it persuades the agent, Red Properties, to pay up.
Red Properties, meanwhile, tells me that it did send a cheque five days before the deadline but it must have gone astray. It claims the vendor had insisted on the deposit because she had been “messed around” by previous prospective buyers, but offers no explanation as to why it took nine months and an ombudsman ruling to return your money.
What if you hadn’t invoked the media? The ombudsman explains that when its rulings are ignored it will assist claimants in legal action and will expel the agent from its scheme.
“Agents who are expelled from TPO membership are not allowed to join another government approved redress scheme,” says a spokesperson. “Since this is now a legal requirement, an agent expelled would have to close or would be trading illegally and could be subject to a fine of £5,000 by trading standards.”
You have now banked the refund cheque, but remain understandably indignant that when agents behave that badly the worst they can expect is for the ombudsman to tell them to give the money back.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
