Hi there. Vendor finance refers to an arrangement where a seller of property financially assists the buyer to purchase the property. There are different types of vendor finance, such as “rent to own” schemes and deposit financing.

From the information you provided, it appears that you entered into a vendor finance arrangement 3 years ago under which you agreed to pay the deposit on a house and make payments for the first few years to the vendor. You are now required under the agreement to refinance with a “mainstream” mortgage in your own name. You have not been able to obtain this finance and the owner/vendor wants to sell the property.

Your legal rights will largely depend on the terms of the sale and financing documents you signed 3 years ago. A lawyer would need to review these terms to properly advise you on what options you have. It is unlikely that you would be able to get back your deposit or any other money paid to the owner/vendor because financing arrangements such as this usually require borrowers to carry the risk of not being able to obtain new finance.

Depending on the circumstances in which you entered the financing arrangement, you may have a legal claim against the vendor if their conduct involved misrepresentations about your legal obligations under the arrangement or if you were pressured into signing the documents.