The HonestyBox is an online platform that allows you to protect your Sale or Purchase of a Property through the retail purchase of a HonestyBox token that acts in the form of a collateral deposit.
The HonestyBox will ask you as the Customer to confirm that the information inputted by the Affiliated Agent is correct. This includes your contact information, personal information and the Agreed sale/purchase price of the property as well as what type of HonestyBox protection is being taken out. The types of protection available are: Qualified Lock or Absolute Lock. Before selecting either option and confirming your HonestyBox protection with the purchase of your HonestyBox token – please ensure you have fully read and understood these terms and conditions and the obligations they impose on you, as once payment has been taken this will constitute a legally binding agreement.
Vendors and purchasers can stipulate the terms and conditions of the HonestyBox agreement. Suggested terms might include:
- The property must value up on survey to at least the agreed purchase price. If the survey down-values the property – the buyer is permitted to attempt to renegotiate the property purchase price. Subsequently, if a new agreement over price cannot be reached – both parties can exit the HonestyBox without penalty or forfeiture of their tokens/deposit.
- The sale must conclude within a specified time frame – The seller or buyer might request that transaction completed by a set date. This date must be clearly stipulated in the Qualifying conditions section of their HonestyBox agreement. Should the sale fail to complete by this date due to neither party being at fault – the parties are within their rights to exit the HonestyBox without penalty. However, if one party is proven to have prevented completion through unnecessary delays or deliberate obstruction – they will forfeit their deposit. The HonestyBox reserves the right to make their own independent investigations should either party claim the other were at fault.
– Unnecessary delays / Obstruction by the Vendors can include: failure to fill-out / return initial contracts, failure to respond to legal enquiries, failure to allow access to the purchaser’s surveyor (s).
– Unnecessary delays / Obstruction by the Purchaser can include: failure to return / fill-out initial legal contracts, failure to apply for mortgage promptly, failure to pay for legal searches or survey promptly.
Following survey, if a purchaser requires additional investigations into the property – they can’t delay these investigations for a period exceeding 30 days of being in receipt of the survey. In an instance of a failed transaction – the HonestyBox will automatically rule in favour of the vendor if it is proven the purchaser waited longer than 30 days to act on a survey’s findings.
**For the HonestyBox agreement to be legally enforceable – it is required that every Agreement last for a FIXED PERIOD OF TIME. An HonestyBox agreement, unless stated otherwise in the Qualifying conditions, will last 120 DAYS from funds being lodged. If Exchange of contacts has not taken place by this point – The HonestyBox will notify all parties that a new deadline must be imposed. If an agreement cannot be made at this point – the parties can exit the agreement without penalty.
UNLESS proven that one party is at fault for the transaction not concluding within the specified timeframe through Unnecessary delays or Obstructive Behaviour. In which instance – the HonestyBox will automatically rule in favour of the aggrieved party.
Only reasons specified within the QUALIFIED CONDITIONS section of the HonestyBox agreement prior to the payment of funds will be considered ‘just and acceptable’ reasons for a party to exit the agreement. It is important therefore that you clearly instruct the Affiliated Agent of any such clauses you want to be included in the agreement and that you clearly read the Qualifying Terms to check for their inclusion prior to accepting these terms and conditions and making your HonestyBox payment.
If the Absolute Lock is opted for – Both Purchaser and Vendor accept that they are compelled to conclude the Sale / Purchase. Failure to do so would breach the terms of the HonestyBox agreement and the party at fault will forfeit their deposit. The forfeited deposit will be transferred to the aggrieved party.
Failure of a customer to fulfil their obligations to either purchase / sell the property in question will result in the forfeiture of their deposit.
The parties must fulfil their obligations and conclude the transaction within 120 days of lodging their deposit.
Failure of the purchaser to arrange and obtain necessary finance to complete the purchase will be interpreted as a breach of the HonestyBox’s terms and conditions and they will forfeit their deposit.
Failure by either party to discharge their responsibilities during the conveyance process in a timely manner, resulting in the transaction not concluding within the specified 120 day period will be interpreted as a breach of the HonestyBox’s terms and conditions and the party at fault will forfeit their deposit.
If by the 120th day – Both Parties are still committed to fulfilling their obligations and fulfil their obligation to either sell or purchase the property in question – They are able to extend the agreement and agree a second 90 day deadline. This extension is only available once – if after the second deadline the transaction has still not concluded, due to neither side being at fault, the HonestyBox will refund both deposits minus the HonestyBox fee.
IMPORTANT NOTICE: The following Force Majeure Clauses would discharge a HonestyBox Agreement and allow the customers to exit without penalty if this is their desire at this juncture.
- Discovery of a previously unknown Covenant / Easement that negatively affects the value / future saleability of the property.
- Discovery of a neighbourly dispute that negatively affects the property in questions value and or saleability.
- Death of a Spouse, Partner, Civil Partner or child. In this event the HonestyBox will grant both parties free usage of the platform with their next sale or purchase.
- Adverse discovery during SEARCHES. These include adverse findings in: coal mining, environmental, flood-risk, future development of adjacent land that might negatively affect the property’s value, chancel repair liability or bad debt attached to a property.
**IMPORTANT – If it is discovered and proven that the Seller was aware of any negative factors associated with the property as listed above – then the HonestyBox reserves the right to penalise the vendor and allocate their full deposit to the purchasers as a penalty.
You will also be consenting to the HonestyBox contacting you with relevant information and updates throughout the course of the HonestyBox transaction you are involved with.
Following your consent to our terms and conditions – you will be invited to purchase your HonestyBox Commitment Credit which will be lodged within the portal to act as your deposit.
Once both parties have purchased their tokens; an update will be sent to both parties as well as the Agent confirming the Property Transaction is now HONESTYBOX PROTECTED.
By agreeing to our terms and conditions you also acknowledge and accept that the HonestyBox will be notified by the Affiliated Agent, on the secure agents portal on www.honestybox.co.uk, as to the progress of the transaction and its outcome. The affiliated agent will notify the HonestyBox when a transaction;
a) Successfully completes (on Exchange of contracts) – The HonestyBox will then update the server and you will receive a request to confirm that the transaction under protection has in fact exchanged contracts. Once BOTH CUSTOMERS have confirmed to this effect – an invitation link will be sent to both parties inviting them to redeem the retail value of their token minus the nominal HonestyBox transaction fee of either £75 or £150 depending on the level of protection you have opted for.
b) Fails – The Agent will notify the HonestyBox as to which customer is in breach of the agreement. We will email both parties with an update and a record of this. A 24 hour window will be given for a party to contest this decision – but in doing so you also authorise the HonestyBox to contact yourself and other relevant parties involved in the transaction. You accept that the HonestyBox will then make an independent third party decision based on these investigations. Should the party described as ‘at fault’ by the Agent not contest to their credit being forfeited within the 24 hour contest period – the aggrieved party will automatically be invited to redeem their full credit amount. They will also then receive a compensatory payment from the other credit: the full amount minus a £50.00 HonestyBox transaction fee.
By agreeing to our terms and conditions you acknowledge and accept that the Affiliated Agent is responsible for providing the HonestyBox with the correct information. And that it is ultimately your responsibility as the consumer to ensure you contact the HonestyBox within the 24 hour contestation period in instances of failed transactions.
As the minimum age, you are able to hold an interest in land/property and therefore be able to purchase property in the UK is 18 years, the HonestyBox requires any customer be of a minimum age of 18 years old.
Proof of Identity and residential address must also be supplied to the Affiliated HonestyBox Agent who will in turn upload this documentation to the HonestyBox to satisfy our AML requirements.