How can we get a non-refundable deposit back?

Q I had a mortgage approved in principle and then found a Fairview home that I wanted to buy. I explained that I had a mortgage in place and just needed the address of my new home for my lender. The salesperson took £1,000 of reservation money on my Mastercard and mentioned that the company has a condition that I need to go through their panel of mortgage advisors.

I refused to accept that condition and she said her head office would decide whether to accept my application. I was presented with a non-refundable deposit form for my signature, which I refused to sign. In my absence the sales lady got this signed by my wife. However my wife questioned the "non-refundable" part, and was told: "It is there for legal reasons, but the money will be refunded should your application not be accepted."

A couple of days later someone else called to let me know that they wouldn't accept my application or refund my money if I don't go through their panel of advisors. What can I do now, given that most of my argument relies on a verbal promise made by the sales consultant?

KV

A Fairview Homes are free to place any conditions they wish on the sale of their apartments as long as they are not in breach of any of the discrimination legislation. You cannot insist therefore, on being sold the apartment. Moreover, your wife would ordinarily be legally bound by the note she signed whether she read it or not under the legal rule that you are bound by what you sign.

But since your wife was told the deposit would be refunded if the application was turned down, she can argue the terms of the note were misrepresented to her. This would render the note invalid in accordance with the case of Curtis v Chemical Cleaning Co 1951. This means you and your wife are entitled to insist on a refund of your deposit from Fairview Homes. And since you paid by credit card you have the added possibility of claiming a refund from the credit card company if Fairview Homes refuse to pay up.