Reservation Agreement For Real Estate Sample
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FAQ
A reservation agreement is frequently used in the sale of new homes when a buyer reserves the right to buy the property for a period of time (the reservation period) and pays a fee. The builder or developer states that it will not sell the property to another during the reservation period.
There should be a written agreement setting out the terms of the reservation. Often the reservation fee is stated to be non-refundable if the buyer fails to exchange contracts within the time period specified. Whether you are entitled to the return of your fee will depend on the terms of your reservation agreement.
' The purchaser is free to cancel the agreement at any time for any reason and, upon such action, is entitled to receive a full refund of the initial reserving deposit. After the execution of a reservation agreement, assuming events go ing to plan, the parties enter into an agreement of a more binding nature.