Forum

Is a deposit made f...
 
Notifications
Clear all

Is a deposit made for reservation of a unit refundable if no booking happened or the unit was not awarded to buyer?

Gandang Bahay
(@ryoudev)
Member Admin

Question from Rose:

Is a deposit made for reservation of a unit refundable if no booking happened or the unit was not awarded to buyer?

 

Answer:

Hello Rose,

Whether a deposit made for the reservation of a unit is refundable if no booking happens or the unit is not awarded to the buyer typically depends on the terms outlined in the reservation agreement or contract. In many cases, the refundability of the deposit is determined by the specific terms and conditions agreed upon between the buyer and the seller or property owner.

Here are some common scenarios regarding the refundability of a deposit:

  1. Refundable Deposit: In some cases, the deposit made for reservation may be fully refundable if certain conditions are not met, such as the booking not occurring or the unit not being awarded to the buyer. This would be explicitly stated in the contract or reservation agreement.
  2. Non-refundable Deposit: On the other hand, some deposits are non-refundable regardless of whether the booking happens or not. This means that once the deposit is made, the buyer forfeits that amount if they decide not to proceed with the purchase or if the booking does not occur for any reason.
  3. Partial Refund: In certain situations, the deposit may be partially refundable, with a portion of the deposit being retained by the seller or property owner to cover administrative costs or as compensation for holding the unit.
  4. Credit Towards Future Purchase: Alternatively, the deposit may be credited towards a future purchase if the booking does not happen or the unit is not awarded to the buyer.

It's crucial for buyers to carefully review and understand the terms and conditions of the reservation agreement or contract before making any deposits. If there is any ambiguity or uncertainty regarding the refundability of the deposit, it's advisable to seek clarification from the seller or property owner before.

It's also best to visit the developer's head office or your realty's main office to check for viable options for the inconvenience.  

Quote
Topic starter Posted : 17/03/2024 2:40 am