Some years ago I put a £100 deposit on a flat in a new development. the site was advertising £70k properties but the developer did not state the price of the flat being built.
When the flat was finished the price had risen to £100k and was no longer a viable proposition as a rental at the current rates so I dropped out and had my option money refunded.
My deposit was treated as a first in the queue option. I was aware of this at the time.
If you put a deposit on a property at a fixed price this is a different story but remember the property laws state that nothing is certain until the fat lady sings ie completion (maybe exchange in most transactions) I have heard of buyers and sellers pulling out after exchange.
Generally you are reasonably safe on a new development but go through the legal process as you can lock the price and considering valuations etc cost money you don't want to suddenly find an increase.
Maybe depending on the wording of the deposit.
ReplyDeleteSome years ago I put a £100 deposit on a flat in a new development.
the site was advertising £70k properties but the developer did not state the price of the flat being built.
When the flat was finished the price had risen to £100k and was no longer a viable proposition as a rental at the current rates so I dropped out and had my option money refunded.
My deposit was treated as a first in the queue option. I was aware of this at the time.
If you put a deposit on a property at a fixed price this is a different story but remember the property laws state that nothing is certain until the fat lady sings ie completion (maybe exchange in most transactions) I have heard of buyers and sellers pulling out after exchange.
Generally you are reasonably safe on a new development but go through the legal process as you can lock the price and considering valuations etc cost money you don't want to suddenly find an increase.