Non refundable deposit - BA Agreement

Hi all,
I have recently signed a BA agreement (29.11.17) and paid a $1,000 non-refundable deposit (including GST) to the BA.

I have realised that the BA is not providing properties in alignment with my strategy and has made recommendations that several seasoned investors on this forum have denounced.

Has anyone had experience in receiving their ‘non refundable’ deposit back, and if so, what is the best measure of action to take?

 

1. Read the agreement you signed.

2. Ask the BA for your money back, citing the reasons you have said.

3. Probably get legal advice if the above didn't get you anywhere.

 

I recall a conversation with my BA about the deposit... IRC she said they'd refund the deposit if no work was completed. So depends I guess, but I went through with the purchase so don't know.

Most BAs, as I understand it, execute on a strategy provided by the client... Few are really qualified to take into consideration your own goals and financial capacity and create a strategy for you.

Some do offer this as a separate service to their BA service... Such as empower wealth ( the boys from the property couch podcast)

 

I would probably read the agreement carefully. Usually they have clauses there to protect their non refundable fees. Unless there is gross negligence or contract is poorly written I doubt you will be able to get it back.

I would take it as educational fee and stop dealing with the person

 

@Paul D I hope it's not someone from Property Chat!?

 

I reckon the legal fee will outweigh the cost of recovering the 1k but Im no lawyer.

 

Just because someone is a member here doesn't automatically mean they are going to provide quality service.

 

Rubbish! Members here are put through a rigorous vetting process.

 

^^ Just sent this message to Biz in response to the above

In regards to your comment here,

If this is not sarcasm, then you have a vested financial interest, and you are being irresponsible by making people think they are safe by going with someone just because they are on this forum.

Assuming someone will provide good services simply because they are on this forum is ridiculous.
One recently responded to poor service by saying he was busy and had personal problems. I am sure the client will be happy with the reply to his costly problems by "yea I had personal problems".
Another never responded about dropping a client when asked for comparables because they thought the price of a property put forward was 10's of thousands too high. There are others who have said nothing publicly.
There are some great people on here, but by saying that you automatically safe by using anyone on the forum is the height of irresponsibility.​

Resonse

8======D ~~~~~~~~​

Thanks for displaying the value of your initial comment.

 

Did you make your strategy clear to the BA - why do you think the properties he has put forward are not meeting your strategy?

Unfortunately if you do put up properties for second opinion here they may be denounced because others think they are poor choices but they may in fact meet the criteria that you gave the BA

Have you fed back to the BA on each of these properties that they don't meet your criteria?

BA work can be quite iterative and as you reject properties and debrief on the reasons why the selection process can get better.

As to the deposit, the BA has done some work so it might be fair for him to keep it, depends on how off track the properties recommended were

 

Anthony, you've broken the sacred pact of the pm. I don't know if we can ever be best friends now.

 

Isn't it obvious??

 

Does this pertain to your questions on the suggestion by your BA that you put a granny flat on a property?

A granny flat can be a valid option/suggestion for someone that wants to improve serviceability but as you have discovered it comes at a cost.

Did you say when you engaged him that you didn't want to do a GF? What was the brief you gave him/her?

You are in a grey area of your journey where your risk profile and strategy is still very fluid so it might be hard for you to tell a BA what you want when you don't know all the types of strategies there are yet.

Without knowing all the facts, I think the BA is entitled to it. After all it's called non refundable for a reason. The only possible way I'd think you could get it back was if he hadn't done any work for you yet.

 

Definitely, all my aliases have been locked up by the Mods

 

What if the BA has not forwarded any properties and you no longer wish to proceed due to bad experiences/reviews from other clients?

 

What did you agree to?

 

But is he providing properties in line with the brief you gave him? Is he fully aware of your "strategy"?

And just because he thinks differently to some forum members does not automatically make him wrong.

Unless you know them personally, forum members are mostly anonymous and you have no way of knowing if they are being truthful in their posts. And you only have to look at some of the lively forum "debates" to realise that there are many different opinions out there. Each with good arguments to back them up.

If he has researched and recommended properties in line with your brief, even if you don't like them, then I think he has well and truly earned $1000.

Either discontinue his services, or have a good chat to him and explain exactly why you have rejected each of his choices. This will give him a better understanding of what you want.

(I am assuming you are being realistic in what you are looking for regarding location, price, condition, rental return and capital gain prospects.)
Marg

 

Haven't agreed to anything but have viewed an old BA agreement (unsure if this company has updated since) and seems the retainer is non-refundable after 7 days of signing.
After this period, there is a termination fee unless contracts are exchanged whereby then the remainder of the BA fee will be payable.
I would imagine most BA's would operate in this manner and only refund the retainer at their discretion?

 

You will need to make them an offer and see if they will accept it.