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Property Reservation Agreement

A completed reservation agreement for a new-build home, with a limited refundable fee, due-diligence milestones and an exchange deadline.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# PROPERTY RESERVATION AGREEMENT

Date: 6 April 2034

Parties: Daniel Morgan, Alder Homes Limited and Beacon Sales Agency

## 1. Purpose and parties

This reservation agreement is made on 6 April 2034 between Daniel Morgan of 4 Willow Rise, Reading RG2 8LF, Alder Homes Limited (company number 12180462) as developer, and Beacon Sales Agency as disclosed agent. It concerns Plot 14, Hazelbrook, 9 Meadow Lane, Reading RG2 8LP, shown on plan HZ-14, for an agreed purchase price of £385,000. No sale contract is exchanged by signing this reservation agreement.

## 2. Facts, scope and terms

Daniel pays a £1,000 reservation fee on signing. Alder will take Plot 14 off the market and will not accept another reservation for 28 days, from 6 April through 3 May 2034. The fee is refundable in full if Alder withdraws, materially changes the advertised specification, or cannot provide good title; it is also refundable less a documented £100 administration cost if Daniel withdraws within the period because finance is refused, a survey reports a serious defect, or searches disclose a material adverse matter.

## 3. Process and responsibilities

Daniel will instruct a conveyancer and apply for mortgage finance by 11 April, order an RICS Level 2 survey by 13 April, and request searches by 16 April. Alder will provide the draft contract, title information, planning documents, warranty details and specification by 11 April, and answer reasonable pre-contract enquiries by 24 April. Each side must promptly disclose a material change, but neither promises that a lender or surveyor will approve the purchase.

## 4. Evidence, records and safeguards

The parties aim to exchange contracts by 3 May 2034, subject to satisfactory searches, survey, mortgage offer, title and replies. The anticipated completion date is 21 June 2034, but it is not binding until the sale contract is exchanged. If exchange has not occurred by 3 May, Alder may remarket after giving Daniel 48 hours' written notice; Daniel may request one written extension, which Alder may accept or refuse without changing the refund terms.

## 5. Review, escalation and outcome

Daniel's conveyancer will check title, estate charges, roads, services, planning and the new-home warranty, and will report any issue before exchange. Alder must not describe this agreement as a guarantee of mortgage availability or completion. The £385,000 price includes the listed kitchen and flooring specification, but upgrades or variations must be priced and accepted separately in writing before ordering.

## 6. Reservations and practical protections

If Daniel withdraws for a reason outside the specified refund grounds, the £1,000 fee is retained as the agreed reservation charge, not intended as a deposit or penalty for a completed sale, subject to any applicable consumer-law requirement. If Alder withdraws or fails to keep the property reserved during the period, it must refund £1,000 within five working days. Each party pays its own professional fees; no commission is payable by Daniel except any separately disclosed fee he expressly accepts.

## 7. England and Wales law and completion

This completed fictional agreement is governed by England and Wales law and is not an exchange of contracts, transfer, mortgage promise or guarantee of planning or warranty cover. The parties will sign or electronically approve a copy on 6 April, keep the plan and specification with it, and record any variation in writing. Nothing prevents Daniel from taking independent legal advice, and Alder's reservation obligation ends at 23:59 on 3 May unless extended in writing.

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