It is used when the buyer wants to “reserve” a specific property, and the seller agrees to temporarily suspend active sales to others until a preliminary or main agreement is prepared.

In new construction / project sales, reservation is very common: the buyer reserves a specific apartment/premises until a preliminary agreement is prepared, finishing choices, schedules, bank, etc., are coordinated.

How does a reservation differ from a preliminary agreement?

• A reservation is usually for a short period and focused on “holding” the property (the seller no longer offers it to others).

• A preliminary agreement is already a “more serious” stage: clear conditions, terms, responsibility, advance payment/earnest money, usually – a clear path to a notarized purchase-sale agreement.

A reservation fee is often paid, but it is not mandatory – it depends on how the reservation agreement is formulated. And whether it is refundable depends solely on the logic of the agreement: a reservation can be both “risk-free” and with clear consequences for the buyer.

The reservation fee is usually paid because otherwise, the reservation has no real value for the seller: the seller stops selling to others, loses time and potential buyers.

In practice, there are 3 models:

• A) Reservation without a fee – rare, usually only for a short period (e.g., 24 hours) based on “goodwill.”

• B) Reservation fee – paid for “holding the property” (often included in the advance payment or price later).

Is the reservation fee refundable if the buyer changes their mind the next day?

Not necessarily. There are two completely different practices – and both are legal – depending on what is stated in the agreement.

Options according to the agreement:

1) “Fully refundable”

If the agreement states that the fee is refundable if the buyer withdraws (e.g., within 1–2 days, or generally before the preliminary agreement), then the buyer can change their mind and get the money back.

2) “Non-refundable” (or partially non-refundable)

If the agreement clearly stipulates that the fee is compensation for the reservation (the seller does not offer to others, the broker does not work, viewings are stopped), then if the buyer changes their mind, the fee may remain with the seller (or be shared).

What is most important to avoid disputes

The reservation agreement must very clearly answer 5 questions:

1. How much time is reserved (e.g., 5 days) and what is considered the end of the reservation.

2. What exactly the seller undertakes (e.g., not to show, not to accept other offers, not to sign with another).

3. What exactly the buyer undertakes (terms: submit to the bank, go to the notary / sign a preliminary agreement).

4. Is the fee included in the price / advance payment / earnest money (and when).

5. Refund rule: when it is refunded, when it is not, and what are the “consequences” of withdrawal.