Document background
The Reservation Fee Agreement is commonly used in Irish property transactions to formalize a prospective purchaser's serious intention to buy a property while providing security for both parties during the pre-contract period. This document is particularly relevant for new developments, off-plan purchases, and high-demand property sales where multiple interested parties may be involved. The agreement typically specifies a reservation fee amount (usually between 1-5% of the purchase price), the duration of the exclusive reservation period, and conditions under which the fee may be refunded or forfeited. It serves as a preliminary step before the formal contract of sale, providing clarity and protection for both parties while complying with Irish property law, consumer protection regulations, and anti-money laundering requirements.
