Return of deposit on property purchase?

[Chaddy]

A relation of ours took a 5,000 euros deposit here on the sale of his property which was explained at the time it was non refundable.
This was two months ago.The estate agent took it of the market and turned down other offers during this period that the sale was pending.
Oh dear,the purchaser,s have now changed their minds for what ever reason and have very very strongly demanded the return of their deposit.The solicitor handling the sale who took the deposit has said it is a choice whether to return it or not.
Does any one know the law or can give advice please.

[trevnhil]

When they paid the deposit and it "was explained at the time it was non refundable." was this written in the paperwork / receipt ??
If it was the deposit is not refundable. If it was not in the agreement then it is an arguable point

[Diocletian]

When we bought last year. We paid a 3000€ deposit covered by a deposit agreement for a 42 day period. In this time the property could not be marketed to others and should the seller withdraw, the buyer would get a refund.

[Chaddy]

HIC.thanks for your in put.You say " end of ".Oh dear not so.
The sale of contract clearly says that the deposit is " non refundable " However the prospective buyer who is a Cypriot says if it is not returned they will sue for it in the courts.My relations solicitors says they would recommend giving the deposit back because they can not ever recollect a case where a Brit as faced a Cypriot in court and the Brit has won...Again oh dear..What would you do?
Infuriating that the property was pulled of the market for ten weeks and as the agent says he could have sold it in that period.

[WHL]

When we bought last year. We paid a 3000€ deposit covered by a deposit agreement for a 42 day period. In this time the property could not be marketed to others and should the seller withdraw, the buyer would get a refund.

Was this in the UK or Cyprus?

[WHL]

A deal was done, the €5,000 is belongs to your relation, unless the purchaser can show a signed document indicating the deposit was refundable.

The estate agent turned down offers in the intervening period because they considered the property sold.

A deposit is a token of good faith. When you pay a deposit, understand that you won't get it back unless you have a signed declaration to that effect.

End of.

I dont think its as clear cut as that,not talking about this case, what for example the purchaser found something wrong with the property not disclosed when he paid the deposit.

[Chaddy]

A deal was done, the €5,000 is belongs to your relation, unless the purchaser can show a signed document indicating the deposit was refundable.

The estate agent turned down offers in the intervening period because they considered the property sold.

A deposit is a token of good faith. When you pay a deposit, understand that you won't get it back unless you have a signed declaration to that effect.

End of.

I dont think its as clear cut as that,not talking about this case, what for example the purchaser found something wrong with the property not disclosed when he paid the deposit.

WHL thanks for your input.The purchaser has found nowt wrong with anything ,the purchaser just says they have changed their minds ( for gods sake after ten weeks "

[Diocletian]

When we bought last year. We paid a 3000€ deposit covered by a deposit agreement for a 42 day period. In this time the property could not be marketed to others and should the seller withdraw, the buyer would get a refund.

Was this in the UK or Cyprus?

This was for a place in Cyprus.

[Chaddy]

Tanny thanks for your input.
1/Yes
2/Yes
3/No
4/The sellers lawyer has got the deposit 5,000 euros.
5/Just the normal 5%.

Anyway i just hope that our situation brings to light to us ex pats out here when selling property to be very very carefull.To us its been a nightmare.In the UK during our long lives we bought and sold eleven properties with no problems.I hope this helps everyone.

[Jimgym]

Sorry to read of your troubles. For what it's worth my opinion is give the deposit back and put it behind you. The last thing you want is a court case hanging over you, with all the attendant stress. To be honest do you think a judge would rule in your favour?

[trevnhil]

Court cases here can go on for years

[Chaddy]

Sorry to read of your troubles. For what it's worth my opinion is give the deposit back and put it behind you. The last thing you want is a court case hanging over you, with all the attendant stress. To be honest do you think a judge would rule in your favour?

Not a cat in hells chance

[Chaddy]

Sorry to read of your troubles. For what it's worth my opinion is give the deposit back and put it behind you. The last thing you want is a court case hanging over you, with all the attendant stress. To be honest do you think a judge would rule in your favour?

Yes gym your right.The contract clearly says..non refundable.But we would loose.So lets us all learn out here that a contract means nowt out here.

[Jimgym]

Sorry to read of your troubles. For what it's worth my opinion is give the deposit back and put it behind you. The last thing you want is a court case hanging over you, with all the attendant stress. To be honest do you think a judge would rule in your favour?

Yes gym your right.The contract clearly says..non refundable.But we would loose.So lets us all learn out here that a contract means nowt out here.

A hard lesson to learn, and rotten luck for you. But on the upside, it could be worse. Cold comfort? Perhaps, but I really do think dragging it out would be bad for your health.

[Uncle D]

Hi, just a point that I am missing, if the house had been taken off the market how would there be any more offers?

[Paul]

If the purchaser new the deposit was non-refundable then he has no legs to stand on in court.

Was there a contract of sale with the term’s non-refundable deposit that he signed of his own will?

Did he sign anything with the wording non-refundable deposit if he did the he has lost the game!

Tell your lawyer to write to the purchaser telling him if he wish’s to go to court then it would be a waste of time as he signed a contract of sale with the wording term’s non-refundable deposit.

I have been to the courts in Paphos and cases take so long you’re looking at years before it will come’to court.

One case I was involved has been going on for 4 years and has still not finished yet.

Paul

[PhotoLady]

But who pays to instigate the court proceedings?
I'm assuming someone has to start the ball rolling, in which case I think I would dig my heels in for a little longer as the seller and return a copy of the signed contractual agreement just to add a bit of weight to not rolling over at the first hurdle....

[Uncle D]

Did you pick the lawyer yourself, I hope that it is not the same as the buyers or recommended by the estate agent.

[Chaddy]

Hi, just a point that I am missing, if the house had been taken off the market how would there be any more offers?

Yes David,the agent informed my relation that he had phone enquiries about the property during the ten weeks it had been off the market.

[Chaddy]

Anyway i just hope that our situation brings to light to us ex pats out here when selling property to be very very carefull.To us its been a nightmare.In the UK during our long lives we bought and sold eleven properties with no problems.I hope this helps everyone.

But hang on, in the opening post you quite clearly stated this was "a relation of yours". Now you're suggesting that it is you who is selling and is in dispute? Which is it then? If you're ambiguous about this, how accurate is everything else you're telling us?

The contract clearly says..non refundable.But we would loose.So lets us all learn out here that a contract means nowt out here.

If this was a case of "he said, she said" you would almost certainly lose in a Cyprus Court - we all know that. But even a Cyprus judge cannot overturn a legitimate contract which says "non-refundable" and find in favour of the plaintiff.

Sorry, but the plaintiff hasn't got a leg to stand on...and as I said before, you should stand your ground. After all, what's the point in having a legal agreement if it's not enforceable in law? That's just too ridiculous for words.

FYI this is the definition of a contract: "A contract is a legally binding promise made between at least 2 parties in order to fulfil an obligation in exchange for something of value". What's not to understand about that?

If the judge found against you, your lawyer should make clear you will take the matter to the EU Courts. Other than in exceptional circumstances (and this is not) you have to fight for what you believe in and you should not be bowed into submission by a shouty bully.

Many times in the UK I took lawyers to Court. Many would say that as a layman I would have no chance against a qualified and experienced lawyer. But I would spend hours beforehand preparing the case and collating evidence. Invariably the lawyers came to Court ill-prepared and with no merit to their arguments. The judges saw through this and they lost.

The fact is that I won every single case against a law firm...and in each case the lawyers were obliged to pay my claim, plus costs. For this reason I do not have an irrational fear of going to law.

If you give in to this disgruntled plaintiff - your buyer - it makes a mockery of legal agreements.

HIC maybe i explained it wrong,the property here is owned by a relation.The eleven sales of property i mentioned was in the UK owned by the wife and myself.
Your other comments,yes you are right in what you say,contracts are contracts.But as i said,our lawyer says going to court may not bring a satisfactory outcome no matter how right you are...Costs etc