The reservation contract itself usually does not force you to buy the apartment, but it can cost you hundreds of thousands of crowns in reservation fees. It is assessed according to the Civil Code and the Real Estate Mediation Act and the specific wording of the contract is decisive. However, signing a reservation contract can be a stumbling block. Our client, Jindřich Krčmář, found this out.
A reservation contract usually does not obligate you to actually buy the apartment, but it may stipulate the conditions for refunding or forfeiting the reservation fee. If the other party breaches the contract (for example, giving false information about ownership), you have the right to claim a refund of the fee and possibly damages.
A reservation contract is not automatically a contract for a future contract.
Forfeiture of the fee is not automatic – it depends on the reason for cancellation.
The estate agent is liable for incorrect information.
If the seller does not have what he promises, you can withdraw from the contract.
Need to check the reservation contract? Our attorney will review it and protect your rights.
A reservation contract is used to secure the commitment of both parties when buying a property. The basic purpose of this contract is to guarantee that the buyer will actually purchase the property and that the seller will not sell it to another party, even if a better offer comes along.
The contract also includes a reservation fee, which acts as a guarantee for the seller. If the buyer withdraws from the purchase without a legal or contractual reason, the reservation fee may be forfeited according to the contractual agreement. However, this is not automatic – it always depends on the specific wording of the contract and the reason for withdrawal. In some cases, the non-refundability clause may be invalid. If the transaction takes place, the fee is included in the total price of the property.
In practice, we often see that booking contracts are unilaterally set in favour of the estate agent or the seller. The most common mistake is the automatic forfeiture of the fee regardless of the reason for cancellation.
Courts assess each arrangement individually and sometimes reach different conclusions – it always depends on the specific wording of the contract and the circumstances of the case.
We will provide you with a complete contractual and legal service, including a booking contract. We can do it within 48 hours, flawlessly and professionally.
A booking contract does not have a statutory content, but there are parts that it should always contain. These are:
Tip: A reservation contract is a type of forward contract. You can find out what other types we have, and how to do them, in our article.
Mr. Krčmář did not rush to sign the booking contract, but there were still problems. The real estate agency through which he purchased the apartment promised something in the reservation contract for the apartment that it could not fulfill. Anyone expecting an apology and a remedy would be sorely mistaken. Mr. Krčmář was only helped by our service. How specifically?
“I can highly recommend the legal services of Accessible Advocate. In my case, it was a disputed situation I got into with a real estate agent and the seller of the property. Both the estate agent and the seller breached the booking contract and refused to accept my demand for a refund of the booking fee. In fact, in the reservation contract, the seller had stated, among other things, that he would sell the co-ownership interest in the parcel of land on which the property was located, even though it soon became apparent that neither he nor the company of owners owned the parcel in question.
On this basis, I was no longer interested in buying the property, as my plan from the outset was that I would only buy the property with the relevant plots or co-ownership shares. In their opinion, these were not sufficiently serious breaches of the reservation agreement, so I had to buy the property or they would keep the reservation fee of around 5% of the property price. Through consultation and later legal representation in the case, the dispute was concluded by agreement without subsequent lengthy litigation. In the end, the other party refunded the reservation fee and paid me at least symbolic compensation for the damage caused. Without the help of the Accessible Advocate, I would most likely not have reached any agreement with the opposing party.”
At the first stage, we assured the client that he was in the right and that the counterparty had clearly breached the contract. At the same time, however, we recommended to settle the matter amicably, as this would avoid a lengthy trial with a possible surprising outcome. In the end, the counterparty responded positively to our pressure and, in addition to the booking fee, compensated for the damages incurred.
Tip: Read about the principles of compensation, what you are entitled to and how to claim it.
The purchase of an apartment begins with the signing of the reservation contract. In our experience, many people underestimate this document. As seen in Mr. Krčmar’s story, it certainly may not pay off. That’s why we’ve prepared a detailed guide on what to look out for when buying a property in our e-book 5 tips on how to buy or sell a property risk-free.
Buying a property is an important process, as it usually involves millions of dollars, so you need to think carefully and take care. In addition to the reservation contract, make sure to look at the following points:
Don’t be afraid to seek the help of an Affordable Solicitor to ensure that the contract is correctly worded and does not contain terms that are unfavourable to you.
Are you about to take out a mortgage? Then you must not miss our series of articles on Mortgage – Frequently Asked Questions and Answers.
The reservation agreement is an important document that precedes the actual purchase agreement and governs the terms and conditions under which the buyer and seller “reserve” the property. In itself, it does not usually create an obligation to actually buy the home, but it can significantly affect whether the reservation fee is forfeited or refunded – the specific wording of the contract and the reason for any cancellation is crucial. If either party breaches its obligations, for example by misrepresenting the ownership or legal status of the property, the other party can claim a refund of the fee and possibly damages. It is therefore crucial to check not only the legal status of the property in the land registry before signing, but also the content of the reservation agreement, in particular the terms of withdrawal, the length of the reservation and the method of payment of the purchase price.
It depends on the wording. If the other party breaches the contract or a condition agreed upon occurs (e.g. mortgage rejection), there is usually no penalty.
No. A booking fee may have a different legal regime than a deposit or security deposit.
Mostly no. A reservation contract does not usually give rise to the possibility to enforce the purchase contract in court.
May be liable for damages and be required to refund the booking fee.
Usually 3-5% of the purchase price, but the law does not specify the amount.
Yes, if there has been a breach of contract or unjust enrichment.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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