Reservation deposit

Reservation deposit – in the Conveyance Procedures, a real estate buyer usually is asked to put a deposit on the chosen property. This deposit is also known as “reservation” and is to be paid towards the seller. The reservation deposit ensures the seller that the buyer is really interested in purchasing the property. On the other hand, it ensures the buyer that the seller will stop the property from sale for some time until both parties arrange the aspects of the Title transfer and respectively about the payment of the total purchase price. Usually the reservation deposit does not have the role of first installment of the purchase price.

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