Document background
The Real Estate Reservation Agreement is a crucial document in Canadian property development and sales, particularly for pre-construction or off-plan properties. It serves as an initial commitment between developers and potential buyers, allowing buyers to secure their interest in a property before the final purchase agreement. The document typically includes details about the property, reservation fee amount, duration of the reservation period, and conditions for converting to a purchase agreement. Used extensively in both residential and commercial developments across Canadian provinces, this agreement must comply with provincial real estate regulations, consumer protection laws, and anti-money laundering requirements. The agreement provides necessary protection for all parties involved while maintaining flexibility before the final purchase commitment. Developers commonly use this type of agreement during the early stages of project marketing and sales to gauge market interest and secure preliminary commitments from potential buyers.
