Reservation Fee Agreement Template for New Zealand

The Reservation Fee Agreement is a crucial document in New Zealand's property and asset transactions, typically used when a potential purchaser wishes to secure their interest in a property or asset while finalizing their due diligence or arranging financing. This agreement is particularly common in off-plan property purchases, new developments, or high-demand market situations. The document outlines the specific terms of the reservation, including the amount of the fee, duration of the reservation period, and conditions for refund or forfeiture. It provides legal protection for both parties by clearly defining their rights and obligations during the reservation period. The agreement must comply with New Zealand contract law and property legislation, including the Contract and Commercial Law Act 2017 and the Property Law Act 2007. A well-drafted Reservation Fee Agreement helps prevent disputes by clearly establishing expectations and procedures for all parties involved.

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, including the property being reserved and the purpose of the reservation fee

3. Definitions: Definitions of key terms used throughout the agreement

4. Reservation Details: Specific details about what is being reserved (e.g., property, unit, or item) and for how long

5. Reservation Fee: Amount of the reservation fee, payment terms, and payment method

6. Duration of Reservation: Period for which the reservation is valid and any extension provisions

7. Rights and Obligations: Responsibilities and rights of each party during the reservation period

8. Application of Reservation Fee: How the reservation fee will be applied (e.g., towards purchase price, handling of refunds)

9. Termination: Circumstances under which the agreement can be terminated and consequences

10. Governing Law: Confirmation that New Zealand law governs the agreement

11. Execution: Signature blocks and execution details