The reservation contract consists of an agreement established between the buyer and the real estate agency or owner when acquiring a home. Through this agreement, the purchase of a property is determined, and an amount of money is delivered as a down payment and deposit, which acts as a holding deposit for the reservation of a flat. The objective of this contract is to stop the marketing of said property for a specific period, which corresponds to the time necessary to secure the purchase agreement between both parties. During that time, the buyer will have priority over other parties interested in purchasing the flat.
What does a home reservation contract include?
In addition to the conditions established between the two parties, the reservation contract must include the following sections:
- Name and personal details of the buyer and seller.
- Description of the property: cadastral reference, address, and surface area of the home, as well as any additional properties included with the real estate if applicable.
- Amount of the deposit: This varies depending on the agreement reached between both parties.
- Method of payment: How the payment of the remaining amount will be carried out and how expenses will be divided between buyer and seller.
- Termination clauses: Conditions under which the contract could be rescinded.
At the moment the property is acquired, the amount of money previously delivered as a deposit becomes part of the total price of the home.