The Letter of Reservation is a crucial document in Swiss business practice, particularly in real estate and high-value asset transactions. It serves as an interim measure between initial interest and final purchase, allowing potential buyers to secure their interest in a property or asset while conducting due diligence and arranging financing. The document typically includes details of the reservation fee, the period of exclusivity, conditions for refund, and the pathway to a final purchase agreement. Under Swiss law, while a Letter of Reservation is not as binding as a full purchase agreement, it creates certain legal obligations and rights for both parties. The document is particularly important in the Swiss market where property transactions can be complex and time-consuming, especially when involving foreign buyers subject to Lex Koller regulations.
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1. Date and Address Block: Full details of both parties including names, addresses, and contact information
2. Subject Line: Clear identification of the document as a Reservation Letter and reference to the property/item being reserved
3. Property/Item Details: Precise description of what is being reserved, including all relevant identifying information
4. Reservation Terms: Key terms including reservation amount, duration of reservation, and whether the amount is refundable
5. Payment Information: Details of how and when the reservation payment should be made, including bank details if applicable
6. Validity Period: Clear statement of how long the reservation will remain valid
7. Signature Block: Space for signatures of both parties, dates, and any witness requirements
1. Special Conditions: Any specific conditions or requirements unique to this reservation, used when there are non-standard terms
2. Cancellation Terms: Specific terms regarding cancellation and refund policies, included when the standard terms need modification
3. Third Party Rights: Reference to any third party interests or rights, included when other parties have related interests
4. Foreign Buyer Clause: Special provisions for foreign buyers under Lex Koller, included when the reserving party is not Swiss
1. Property Details Schedule: Detailed description of the property including plans, specifications, or photographs if applicable
2. Payment Schedule: If the reservation involves multiple payments or stages, details of payment structure
3. Due Diligence Documents: List of documents to be provided during the reservation period
4. Property Plans: Floor plans, site plans, or other relevant drawings if applicable
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Construction
Banking and Finance
Hospitality
Retail
Commercial Property
Luxury Goods
Industrial Property
Tourism and Leisure
Relevant Teams
Legal
Real Estate
Sales
Business Development
Finance
Compliance
Operations
Property Management
Investment
Commercial
Relevant Roles
Real Estate Manager
Property Developer
Legal Counsel
Commercial Director
Asset Manager
Sales Director
Business Development Manager
Property Manager
Investment Manager
Compliance Officer
Transaction Manager
Contract Administrator
Chief Financial Officer
Real Estate Agent
Development Director
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