Penalties for Cancelling HA bookings

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chaletgirl
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Joined: Mon Aug 19, 2013 8:14 pm
Location: slovenia + NorthLancashire

Penalties for Cancelling HA bookings

Post by chaletgirl »

We have had a very good offer to buy our place even though it was not for sale! We are considering it seriously but we have quite a few bookings with HA this summer. The buyer is very keen to purchase ASAP so my question is has anyone had to cancel rentals with HA not due to coronavirus? I’m wondering what the penalties will be. Thanks
AndrewH
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Location: Kefalonia, Greece
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Post by AndrewH »

Hello chaletgirl. The same concerns have been crossing my mind lately about completing a sale of a rental property when there will be guests' bookings still in place.

I don't know about HomeAway penalties, but if charged I think they would be a minor matter compared with achieving a good sale for your property. As you know, the booking contracts would just be between you, as the owner, and each future guest.

If I can remember anything about English law, one thing I was taught was that a person can make a deal with a third party to pass on the benefits of an existing contract, but he cannot do the same with the burdens of that contract. There is a loophole called "novation" which can be used to get round that problem, but it wouldn't apply here unless all the future guests who have booked consented.

So the upshot is that if you sold your property with a booking contract still existing, your buyer, or you, would receive the rent (depending on what was arranged), but only you and not the buyer would be responsible and liable if something went wrong e.g. leaking roof, broken washing machine etc., etc., etc.

The obvious thing (IMO) is not to complete the sale of your rental property until the last paying guest has left, if this potential buyer can wait that long.
Last edited by AndrewH on Fri Jun 26, 2020 8:52 am, edited 1 time in total.
costa-brava
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Post by costa-brava »

We were in the same position a few years back but the bank crisis had made things more urgent. I remember that we cancelled a couple with full refund. One we managed to get a booking for them in the same block of apartments and just passed it over. Another French family didn't want that option and our bank really messed up the refund big time. There was one English family that we took right up to the bell and held the sale back a few days.
I have to agree with Andrew that, if you have a good deal, I'd go for it on a wing and a prayer. Sort it out as you get to the sales date. The ones you get into the net might pay for the ones you have to cancel.
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