Document background
The Holding Deposit Contract serves as a crucial intermediate document in Pakistani property transactions, providing security to both buyers and sellers during the pre-purchase phase. This document is typically used when a potential buyer has serious interest in a property but requires time to arrange financing, conduct due diligence, or fulfill other pre-purchase requirements. The contract defines the amount of the holding deposit (usually a percentage of the property's value), the duration for which the property will be held off the market, and the conditions under which the deposit will either be applied to the purchase price, refunded, or forfeited. It must comply with Pakistani contract law, property regulations, and where applicable, Islamic banking principles. The document protects both parties' interests by clearly outlining their rights and obligations during the holding period.
