"Reservation Fee Agreement"

[jojo]

Can someone please advise me is a "Reservation Fee Agreement" on the sale of a property legally binding and if the vendor decides to pull out would their be a penalty?

Thanks in advance jojo

[Pantheman]

Can someone please advise me is a "Reservation Fee Agreement" on the sale of a property legally binding and if the vendor decides to pull out would their be a penalty?

Thanks in advance jojo

Depends very much on the content of the agreement. If written and it states vendor is liable then yes, you could sue him.

If it is a verbal, then i doubt you could do much.

[Nigel Howarth]

Hi jojo

Usually the payment of a Reservation Fee will result in the vendor withdrawing the property from sale - and the reservation fee is generally not refundable if the purchaser doesn't proceed with the purchase.

Any agreement regarding a reservation fee should be drawn up by the lawyer representing the purchaser and will say how much was paid, the circumstances under which it will be refunded and that it will be deducted the full purchase price for the property.

Regards,