Key topic: sourcing fee for serviced accommodation
Award
Refund the complainant £3780 (sourcing fee paid minus administrative charges)
What happened?
The complainant says they:
- expressed an interest in an investment property and made an offer
- entered into an agreement on 8 May with the agent to source properties to buy within a year
- were advised by the agent on 22 May that an offer had been made on a property
- withdrew from offer on 29 May (her understanding was that she had withdrew from the contract within 7 days in line with the contract)
- were not counting the day of the offer to be included in the 7-day refund period. There was also a bank holiday within this period
The agent responded, saying:
- the complainant was made fully aware of the terms when the offer on the property was made
- the offer on the property was made on 22 May 2024, and the complainant requested a refund on 29 May which was outside the 7-day period
- the seven-day period is clear. The contract refers to seven full 24-hour days and the complainant withdrew on day 8 and would not be entitled to a refund
What evidence was provided?
Emails, contract
What was decided and why?
- The agent charged a fee for sourcing a suitable property. The complainant has been left without a property
- The complainant wrote to the agent asking to withdraw from the agreement and agreed that the agent could withhold an administration fee which was considered in the final award
- In the agent’s evidence it shows that the offer was made on 22 may, and the complainant withdrew on 29 May
- It is reasonable to calculate seven full 24-hour days from the day after the offer was made (day one)
- Day one was 23 May, making seven full days later end on Wednesday 29 May – the day the complainant withdrew
- The decision was to refund the £3780 sourcing fee less the administration fee (£260) both parties had agreed to
How can you avoid this happening in future?
- All communication should be clear and easily understood
- Understanding that day one is likely to be the day after the transaction
- Ideally providing exact dates of when a consumer can withdraw from an agreement
- When providing any timelines always consider if a bank holiday will affect your calculation
