Buyers should verify that any booking agreement they must sign complies with the Code and specifies that if the contract is cancelled or the booking period expires, only reasonable deductions can be made on booking fees. Booking fees must not be declared “non-refundable.” Before signing a booking agreement, sellers should verify that the terms comply with the code requirements and ensure that they do not enter into any other agreement for the same property with another party. Following the results of a consultation process conducted last fall, advice is currently being sought on some proposed changes to the code. The next edition of the code is expected to be published this summer and the changes will take effect on February 1, 2017. The consultation paper recognizes that the code faces some challenges in order to remain credible, visible and relevant to first-time homebuyers and to be an important priority in the sector. The emphasis should be on increasing consciousness. The code also seeks approval for the Chartered Trading Standard Institute`s (CTSI) consumer price licensing system (which succeeded the old fair trading system). This would allow homebuyers to search for the CTSI-approved code logo and then approach the purchase process knowing that they are dealing with a contractor who meets the standards and requirements of the code. There is no specific part of the consultation document on booking agreements, so it may be doubtful that there will be any changes to the current booking fee rules when the new code comes into effect. When contracts are exchanged, the tax is deducted from the contribution which is then placed.
However, the buyer may decide, at any time during the booking period, not to continue the purchase and to revoke the contract. The tax is then refunded minus the fees, such as the seller`s legal and administrative costs. Booking agreements differ from exclusivity agreements, which are surpassed by a certain security of the buyer by setting a period during which the seller agrees not to enter into negotiations with another party. As part of a reservation agreement, the seller cannot enter into another such agreement with another party, but enter into negotiations. A booking contract can be used when buying new homes if a buyer reserves the right to purchase a property for a specified period of time. During this period (known as the “booking period”), the seller agrees not to sell to another party. As part of the agreement, the buyer pays a down payment (known as a “booking fee”). The booking period usually lasts 28 days. The code stipulates that home buyers must receive a reservation agreement clearly specifying the terms of the booking, including (but not limited): the consumer code for home builders, introduced in 2010 (hereafter the code), stipulated that the reservation agreement must specify the costs for which the buyer might be responsible.
The seller can deduct only one amount that was actually generated during the processing and holding of the booking, and it is unacceptable to deduct a fixed percentage or amount. Since booking fees can be significant (up to $20,000 at the top of the market), the buyer`s agreement should be reviewed by a legal expert before signing.