Buying a home is an exciting process, but also full of important decisions and paperwork that is worth knowing in detail. One of the key documents in property transactions is the home reservation contract, especially useful to guarantee the property’s availability while the formalities before signing the deed are handled. At Barcoland, we receive many queries on this subject, so we have compiled the most frequent questions so you understand everything it involves and how to protect your interests.
What is a home reservation contract?
The reservation contract is a prior agreement between buyer and seller that formalises the intention to buy. It is usually accompanied by a deposit, an amount that guarantees the property will be set aside and cannot be sold to someone else for a set period. This document not only shows the buyer’s interest, it also allows the seller to organise the paperwork and prepare the home for handover.
What information must it include?
A complete reservation contract must include:
- Details of the buyer and the seller.
- A detailed description of the property, including address, floor area and main features.
- Amount of the deposit or reservation.
- Maximum period to formalise the sale.
- Payment method and refund conditions.
- Date, place and signature of both parties.
Having all these elements correctly drafted is essential to avoid misunderstandings and ensure the agreement is legally valid.
How does it differ from a deposit (arras) contract?
Many people confuse the reservation contract with the arras (deposit) contract. Although both relate to the sale, there are important differences. The reservation contract focuses on guaranteeing the property’s availability and is often used for new-build homes, while the arras contract includes stricter financial consequences in case of breach. In addition, the reservation contract is not regulated by the Civil Code; it is based on the Instalment Sales of Movable Goods Act, which means its validity depends on the document being correctly drafted.
How much money is paid as a deposit?
Generally, the deposit to reserve a home represents between 1% and 5% of the sale price. For example, on a property valued at 200,000 euros, the reservation could be between 2,000 and 10,000 euros. The exact amount depends on the time until the deed is signed and on the conditions agreed between buyer and seller.
What mistakes should I avoid when signing?
Some of the most frequent mistakes include:
- Not reading the contract carefully before signing.
- Signing without legal or property advice.
- Not including termination clauses that protect the buyer if problems arise.
- Relying on verbal agreements or generic documents.
Avoiding these mistakes helps protect both buyer and seller, ensuring a transparent transaction without surprises.
What advantages does it offer?
For the buyer, the reservation contract provides peace of mind and time to organise financing, look for suitable mortgages and inspect the property. For the seller, it allows the handover to be planned and guarantees they will receive the agreed deposit. It also makes coordination with developers and financial institutions easier, especially for new-build homes.
What happens if I want to withdraw from the purchase?
Unlike the arras contract, the reservation contract only allows cancellation if a specific clause is included. That is why it is essential to review this section and make sure situations such as the inability to obtain financing or the existence of charges on the property are covered.
Types of reservation contract
There are mainly two models:
- Pre-marketing phase: the property does not yet have a building licence or guarantees, so the reservation is not binding and the deposit can be recovered.
- Marketing phase: the home is already formally for sale, the reservation includes VAT and the document is binding, securing the purchase.
The home reservation contract is a fundamental tool for any sale, especially in today’s property market. Knowing its features, differences from other contracts, deadlines, deposits and protection clauses allows the buyer to make informed decisions and the seller to guarantee a safe transaction.
En Barcoland we always advise reviewing this document with professional advice to avoid mistakes, protect the investment and enjoy a calm, safe buying experience.