101wvd

Does anyone know if there is a cooling off period with this example.

We went again to look at areas etc. last week. We found a property we liked and ended up signing a reservation pre contract form and paid $2000 cash deposit.

We then had some news that my husbands health issues were worse than we thought and we would not be able to live in Spain for the foreseeable future. He is almost 78 and I am 70. The property was a townhouse with a basement and solarium so 4 flights of stairs which he definitely would be unable to use now or in the future.

We informed the Agent who was English and works for a well known company. This was 36 hours after handing over our cash. He said he would try to get all our deposit back although we said we understand if we have to pay any expenses etc. Anyway, he has now written to say the Agency (not the builder) will keep our cash and if we buy a home from them within 12 months the 2000 euros will be allowed towards it. I have told him there is no way we will be able to buy a home in Spain (it was also dependant on the sale of our UK home which is now off the market since we got back on Friday) due to the health issues plus of course the unsuitability.

Do any of you know if there is a legal cooling off period under the Bill of Rights European Law which was changed in 2015 so I have been told but I can't find anything on google. Would appreciate any help as we can ill afford to lose 2000 euros.

Keith1963

I always thought once a deposit is paid then any withdrawal from the sale means you lose it. Equally if the vendor does the same they pay back double your deposit. There will obviously be others here with far more experience than I, and I wish you well but I have never heard of anyone being successful with this.

Rosemary

That is what we were told by the selling agent when we bought our house.

Rosemary

snikpoh

But they didn't pay a DEPOSIT per se - they paid "pre contract form and paid $2000 cash deposit" which is like a gentleman's agreement to take it off the market.

Surely?

However, having said that, I don't know how you might get it back as I doubt the money went anywhere near the vendor.

mikelincs

That was how the buying process was explained to us as well, deposit was forfeit if you withdrew.

snikpoh

But a true deposit should be paid to a solicitor and not the agent - I don't think that's what this was.

Maybe a moot point?

mikelincs

Ours was paid to the agent

Mitzyboy

Pay through a solicitor. In this case it is very possible the deposit would have been recoverable if paid through their solicitor and they hadnt moved it on.

As it is, when we were buying we were told that once the initial deposit was paid we would lose it if we pulled out

rspltd

I suspect the only valid answer is to look at what you signed. If it says it is non refundable then that is probably it.

101wvd

We were not told by the Agent it was non refundable. Researching a bit further today it appears that before signing anything, the Agent should have told us we need a solicitor to check out about ownership of the land etc.etc.before we paid any fee. We are still researching and also waiting for the Agent to respond to our last e-mail.

Thank you for all your thoughts.

Keith1963

I assume the pre contract payment agreement covers all this ? Whatever they signed before releasing the money will contain all the information they need to claim it back etc ?
In our case we signed the pre contract and paid the deposit in to the vendors account.
Which is as we generally agree is non recoverable if you withdraw.

Surely a contract was signed before you released the 2k ?
And if not ....... Why not ?

101wvd

Yes, we signed a reservation form and then paid the 2K. Unfortunately we did not read it thoroughly as we were all talking which added to the distraction…..maybe that's how to get an unsuspecting buyer relaxed!!! Clever and it worked I am sorry to say. We are usually hot on these small print things but alas, it looks like a costly mistake!

Mitzyboy

Well .... again, as I mentioned previously (and this has been discussed before) the majority of people would not buy a house in the UK without using a legal entity, so it stands to reason that being inexperienced in a foreign market the same rule should probably be followed

Keith1963

It's easy to be drawn in to these things, if this company is honourable they will surely accommodate you or at least give you some refund. If they need to distract you to get your money it sounds as if they are less than honourable. It's easy for anyone to say this but an English Speaking independent lawyer is always the first port of call. I wish you well with this, it can be an unpleasant business. I am sure if any more questions occur to you people will help you all they can on here.

Keep us updated

Pulaski

It is likely critically dependant on what the "offer document" you signed says. It might, for example say that the offer is contingent on you obtaining finance, or the building passing an inspection (or being properly repaired), or there being no structural defects.

If such contingencies are permitted then you may, or may not be allowed to add additional contingencies, .... though in this case it sounds as though the OP did not add any custom contingencies.