Document background
The Reservation Fee Agreement is a crucial document in Australian property transactions, typically used when a potential purchaser wishes to secure their interest in a property while conducting necessary due diligence or arranging financing. This agreement bridges the gap between initial interest and formal property purchase contracts, providing security for both parties during the negotiation phase. The document specifies the amount of the reservation fee, the duration of the reservation period, and conditions for either proceeding to purchase or obtaining a refund. It's particularly relevant in hot property markets or for off-the-plan purchases where buyers need time to arrange their affairs while maintaining their claim to the property. The agreement must comply with state-specific property laws and federal consumer protection regulations.
