Home Reservation Contract: What You should Know

The process of buying a home can be long and full of procedures. Therefore, before formalizing the sale, it is common to sign a home reservation contract, a document that guarantees that buyer and seller reach an initial agreement on the property and the price. This step is essential to ensure that the apartment or house is not sold to another person while the final details of the operation are being closed.

What is a Home Reservation Contract?

The home reservation contract is a private agreement between the buyer and the seller (or the real estate agency) whereby the buyer expresses their intention to acquire a property and the seller agrees to withdraw it from the market for a certain time.

In return, the buyer delivers an amount of money—called a “reservation” or “deposit”—that serves to secure the commitment. This amount is subsequently deducted from the final price if the sale is formalized.

The home reservation document is not the same as the earnest money contract: while the reservation contract has a more temporary and symbolic character, the earnest money contract already establishes firmer legal obligations and penalties in case of breach.

It can also be found as a property reservation contract, especially in new or development home purchase transactions.

What should a Home Reservation Contract between Individuals Include?

When the contract is made without the intervention of an agency, it is important that both parties make all the points clear to avoid confusion. A home reservation contract between individuals should include:

• Full details of the parties: name, ID and address of the buyer and seller.
• Description of the property: address, surface area, cadastral reference and other identifying details.
• Amount of the reservation: amount delivered by the buyer and method of payment.
• Validity period of the reservation: time during which the property will be blocked for other buyers.
• Withdrawal or penalty clauses: what happens if one of the parties decides not to continue with the sale.
• Signature of the parties and date.

This document must be accompanied by a receipt or proof of payment of the reservation to avoid possible conflicts.

Home Reservation Contract Template

Having a home reservation contract template is useful to have a basis when drafting the document, but it is recommended to personalize it according to each case. Not all properties or all transactions have the same conditions, so it is advisable to review it with a professional before signing.

In this contract template, points such as the amount of the reservation, the deadline for signing the earnest money or sale contract, and possible penalties for non-compliance must be adapted.

Tips before Signing a Home Reservation Contract

Before signing any document, we recommend following these tips:

1. Check the ownership of the property. Request a simple note in the Land Registry to make sure that whoever sells is really the owner.
2. Read all the clauses carefully. Make sure that the conditions, terms and penalties are clearly specified.
3. Request a copy of all documentation. Keep both the contract and the proof of payment of the reservation.
4. Consult with a professional. An agency like Espígul can advise you so that the whole process is safe and transparent.

Home Reservation Contract with Espígul

At Espígul we accompany you throughout the process of buying or selling your home. We review and prepare the reservation contract so that everything is well detailed and there are no surprises.

Our team ensures your peace of mind and offers you professional real estate advice from the first moment, so that every step you take is safe, clear and adapted to your needs.

If you are thinking of reserving or buying a new home, let us advise you: we will make the process easier and with all the guarantees.

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