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Once you’ve found a property you want to buy, the next step is to reserve it. This removes the property from the market and sets the wheels in motion for your purchase.
Before a reservation can be completed, we’ll need the following details to present to the seller:
Once your offer is accepted, we’ll prepare the reservation agreement. A sample is available on request. This document confirms:
We’ll require the following from all buyers:
We use Dropbox Sign, a secure, user-friendly digital signature platform. You can sign on your phone, tablet or computer. It’s simple, even if you’re not tech-savvy.
The reservation deposit is typically non-refundable, but it is held in our client account as stakeholders. The seller must be able to deliver clear legal title. If any legal issue arises during due diligence that prevents you from proceeding, your deposit will be refunded.
The agreement becomes effective once both parties have signed and we receive the deposit, or valid proof of transfer. We allow 24 hours to transfer funds, or until noon Monday if signed over a weekend.
Once the reservation agreement is effective, the property is taken off the market. If the seller subsequently receives a higher offer, they must decide whether they are morally prepared to break their agreement with the first buyer and whether doing so is financially worthwhile. Under our standard reservation agreement, a seller who withdraws must return double the deposit paid. There is also no guarantee that the person making the higher offer will proceed once the property becomes available to them. In our experience, this situation is extremely rare, and the reservation system makes gazumping far less common than in the UK.
The next stage is normally a private purchase contract, usually signed within two weeks of the reservation. This records the detailed terms of the purchase, including the price, completion date, what is included in the sale and any conditions agreed between the parties.
At this stage, the buyer typically pays a total of 10% of the purchase price. The reservation deposit already paid normally forms part of that 10%, rather than being an additional payment. The precise amount, timing and form of contract can vary according to the circumstances of the sale.
Before signing, the buyer’s lawyer will normally have completed the initial legal checks and will explain the terms and obligations contained in the contract.
The consequences depend on the particular contract, the terms governing the deposit and the reason the transaction cannot proceed. There may be significant financial or contractual consequences for the party who withdraws, so both buyer and seller should understand the agreement before signing it.
In our experience, it is very unusual for either party to withdraw after the private purchase contract has been signed. If it does happen, each party’s lawyer will advise them according to the terms of the contract and the particular circumstances.
We do not retain any part of the deposit ourselves. If the sale doesn’t proceed, the funds are released as agreed between buyer and seller. The process is transparent, and we’re happy to walk you through every detail.
You should never feel pressured. Signing the agreement and transferring the deposit is always your decision.
Download a sample reservation document
If you have questions or need assistance, call us on (+34) 952 90 52 00 or email info@michael-moon.com. We’re here to make your journey smooth, safe, and stress-free.
Normally, it is non-refundable once the seller has accepted the reservation. However, the reservation remains conditional on the buyer’s legal due diligence, together with any special conditions written into the agreement. Whether the deposit is refundable will therefore depend on the terms of the reservation agreement and the reason the purchase cannot proceed.
Yes. We use a secure digital system that allows you to sign documents from your phone or computer anywhere in the world.
We usually allow 24 hours from signing, or until noon Monday if the agreement is signed over a weekend.
It is held in our client account as stakeholders. We do not retain it ourselves, and it is only released as agreed between the parties.
We move forward to the private purchase contract stage, typically signed within two weeks with a total deposit of 10% of the purchase price. The reservation deposit normally forms part of that amount. Your lawyer will conduct the initial legal checks in the meantime.
The private purchase contract records the detailed terms agreed between the buyer and seller. It is typically signed within two weeks of reservation, when the buyer pays a total of 10% of the purchase price. The reservation deposit already paid normally forms part of that amount.
That depends on the terms of the particular contract and the reason for the withdrawal. There may be significant financial or contractual consequences, so each party should obtain advice from their lawyer. In our experience, withdrawal after the private purchase contract has been signed is very unusual.
A seller could decide to break the reservation agreement and accept another offer, but there would be contractual consequences. Under our standard agreement, the seller must return double the reservation deposit. In practice, this is extremely rare, and the person making the higher offer may not proceed once the property becomes available.
Buying a property naturally raises questions. We've brought together answers to many of the questions buyers regularly ask us.
