What exactly is the reservation agreement?
If you are buying a property that is yet to be completed, it is possible to secure your reservation with a deposit and on signing the reservation agreement. This document can be compared to a preliminary purchase agreement when acquiring older property.
What is included in the reservation agreement?
The reservation agreement is a written document, as a verbal agreement does not suffice. A simple signature of the agreement is required. You do not have to consult a solicitor or have an official record this signature.
By law, a reservation contract must include certain information (article R. 261-26 of the home building law (CCH)):
- Your name and address;
• The name and address of the developer;
• Information about the home: surface area, number of rooms, location in the block or housing estate, materials and techniques used during the construction work, equipment in the private areas, etc.);
• The provisional price of the home;
• Any loans that the purchaser may require;
• The latest date for signing the sales agreement;
• Deadlines concerning the construction period;
• The legal rights you have to withdraw from the purchase.
Reservation agreement and deposit
If you wish to reserve your new home, the reservation agreement offers certain security, but you will also need to hand over a deposit to complete this reservation. This money will be handed over by the developer to the solicitor. The sum will be deducted from the final sale price.
Right to withdraw
If you have signed an agreement and then change your mind about the purchase of the property, you have ten days to withdraw (from the day after the delivery of the letter informing you of the reservation, as laid down in article 210 of the Macron Law). Your decision to withdraw must be sent by recorded delivery with acknowledgement of receipt or handed over personally.
To find out more about the formalities when buying new property, please contact our team. Take a look at the housing programmes we have on offer at Faubourg Immobilier.