A reservation agreement is the initial document used to hold a property — often an off-plan unit — while the full sale contract is prepared. It is usually accompanied by a reservation deposit and sets out the basic terms of the intended purchase.
Where you’ll see it
You’ll see a reservation agreement at the very start of an off-plan booking, before the sale and purchase agreement is signed. It records the unit, the price and the buyer’s intent, and takes the property off the market for a short period.
Why it matters
The reservation agreement’s terms — especially whether the deposit is refundable if the buyer does not proceed — matter a great deal. Buyers should know what they are committing to before paying a reservation deposit, since it can be at risk if they withdraw.
What it is not
A reservation agreement is not the full sale and purchase agreement — it precedes it and is usually lighter on detail. It is also not registered ownership; it merely reserves the unit pending the formal contract.
Example
A buyer pays a reservation deposit and signs a reservation agreement to secure an off-plan apartment, then signs the full SPA a short time later and the sale is registered via Oqood.
Connected documents and parties
Reservation form, deposit receipt, draft SPA; buyer, developer/agent.
Going deeper: related reading: sale and purchase agreement (off-plan).
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