Booking contract! Contract Reservation

The reservation contract is a contract that enables the buyer to reserve the property for an agreed period of time. During this time, the seller or the real estate agency – which relates to the immovable in the contract – cannot sell it to anybody else. qatar real estate

The purpose of the contract is to provide the eventual purchaser with enough time to check the legal and factual position of the property and, where necessary, to ensure that the purchaser can check whether the purchase means are available for financial purposes.

The contract is usually concluded by depositing the reservation fee. The size of the fee does not vary from 20 000 CZK,- CZK to 100 000 CZK for a dwelling unit, as may be specified by law or any other legal regulation. It is paid in cash when the reservation contract is signed. The purchaser should verify that the payment of the reservation fee is subsequently considered as part of the purchase price. We now reach the first potential pitfall - the conditions under which the reservation fee is returned to the party concerned. These conditions usually cover legal deficiencies such as the existence of lien, actual burdens (users' rights) and issues such as leasing and factual deficiencies (for example the fact that the roof of a house needs repair). There are no conditions stipulated for negotiating the above conditions. It therefore depends specifically on the conditions agreed in the contract. Ideally, the return of the fee is a successful contract if the purchase contract is not signed.

One of the conditions for the reservation fee could be recommended if the wording of the subsequent contract is not agreed (Purchase Contract or Future Purchase Contract). It must generally be pointed out that different conditions for different types of property would exist.

What is the contract supposed to include?

When negotiating a reservation contract, several elements to be included in the contract must be taken into account. First of all, the contract should specify the period for which the real estate is reserved in order to ensure that nobody else can sell it. The seller or third-party agent should allow the buyer to verify the legal and factual issues related to the property. The contract should ensure the preparation of a contract and, ultimately, financial resources for the purchase (e.g. mortgage credit). The vendor, usually the third party agent (e.g. real estate agency) must confirm unconditionally that the particular property is not sold or offered for sale to anybody else during this period under the contract.

As agreed by all parties, the contract shall include the size of the reservation fee, the conditions of refund of the fee and the inclusion of the fee in the property purchase price.

If purchasers are informed during negotiations on purchases of property that the reservation contract submitted is standard and is unchangeable (even if no part of the contract fulfills them), the importance of any text modifications must be objectively assessed. If no amendments are possible (e.g. the reservation fee), it is advisable to consider contacting another real estate agency and searching for a different property. You will not risk forfeiting a reservation fee unnecessarily and/or other disappointments. Last but not least, it is necessary to make sure the person to whom a reservation contract is concludted (i.e. the person who will bear your fee) is the person to return the fee as the basic condition of the contract, in the event that no purchase contract or future purchase contract is concluded. It is therefore recommended that you be careful when selecting such a person before undertaking a non-insignificant booking fee.

Finally, it should be emphasized very strongly that caution and prudence in life pay off, and not only in relation to property.