
Are you familiar with "reservation agreements"?
An order to reserve a property through a professional real estate agent is called a reservation agreement. It is concluded, among other things, when a purchase is intended but the purchase contract cannot be concluded until a later date for various reasons. By concluding this agreement, the real estate agent guarantees that the property in question will not be offered to any other interested parties for a certain period of time.
Is a reservation fee necessary?
However, such a service is not always free of charge. Some brokers charge interested parties a reservation fee. This fee is the remuneration for the broker's agreement not to market the property for the agreed period.
If a notarized purchase agreement is then concluded, the reservation fee is credited against the broker's commission. In most cases, however, brokers waive the reservation fee, as disputes can arise at the latest when the interested party withdraws from the purchase. Furthermore, effective reservation fees are very difficult to agree upon in practice.
A reservation agreement must be concluded by all parties, i.e., the prospective buyer, the seller, and the broker. Without the seller's participation, the agreement is not valid for the buyer. However, it is important that the seller is informed of this agreement, as the broker's temporary passivity constitutes a breach of his obligations under the brokerage agreement in the form of an exclusive mandate. The exclusive mandate, or qualified exclusive mandate, regulates the active search for the property and the identification of all potential buyers for the property.
How long can you reserve a property?
However, the property cannot be reserved for an indefinite period. The duration is a matter of negotiation. One or two months are customary to finalize the purchase. In theory, a longer period would also be possible. However, you should then consider entering into a preliminary contract.
Ultimately, however, the final purchase agreement is what counts. The reservation agreement cannot prevent you from withdrawing from the property purchase, as the property is not transferred until the actual purchase has been notarized, and no one can force the seller to sell.
Would you like to know what to look out for when buying or selling a property? Contact us? We will be happy to advise you.
Further information can be found here:
- https://de.wikipedia.org/wiki/Reservierung
- https://de.wikipedia.org/wiki/Wohneigentum
- https://de.wikipedia.org/wiki/Wohneigentumsquote
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
Photo: © giovanni gargiulo/Pixabay.com