The Reservation Contract
in Spain Explained
The reservation contract is your first legal commitment. It reserves your chosen unit while due diligence is carried out. Here is exactly what it should — and should not — contain.
What the Reservation Contract Must Contain
Essential Clauses
Red Flags to Watch For
Rule: Never Pay Before Your Lawyer Has Seen the Contract
Developers and agents often create a sense of urgency around the reservation — "another buyer is interested", "this unit goes off the market today". Do not allow this to rush you into paying before your lawyer has reviewed the reservation agreement. A reputable developer will give you 24–48 hours for a lawyer review. If they will not, that tells you something important about how they operate.
Reservation Contract FAQs
Reservation deposits on the Costa del Sol typically range from €6,000 to €12,000 for apartments and €15,000 to €30,000 for villas. The amount varies by developer. Some developers fix a standard reservation fee across all units; others charge a percentage (usually 1%) of the purchase price. The reservation deposit is credited against the private purchase contract deposit when you reach that stage.
This depends on what the reservation agreement says. Most reservation agreements allow the buyer to withdraw and receive a full refund within the due diligence period if: (a) the lawyer finds issues with the developer's documentation; (b) the buyer cannot obtain mortgage finance; or (c) the specification or pricing is materially different from what was agreed. Outside these conditions, the reservation deposit may be forfeit. Always read the refund provisions carefully before paying.
The reservation period — the time between paying the reservation deposit and signing the private purchase contract — is typically 4 to 8 weeks. This allows time for your lawyer to carry out due diligence, for you to arrange finance if needed, and for the developer to prepare the draft private purchase contract. If you need more time, most developers will grant a short extension on request.
Not if the reservation agreement is properly executed. A valid reservation takes the unit off the market. The developer cannot accept another offer on the same unit while the reservation is in force. This is the entire purpose of the reservation deposit — to secure exclusivity while you carry out due diligence.
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