Reservation Agreements

We're the first Estate Agency in Folkestone to offer Reservation Agreements as standard on ALL our sales transactions, so we understand you're likely to have questions! Check out our FAQs below. If you have any further questions regarding Gazeal, Reservation Agreements or how it impacts you, please give us a call on: 01303 475085.

1. What are they?

Once the offer has been agreed, the Buyer and Seller both sign the agreement and are then bound by the terms within. If either party withdraw for any reason, other than what is agreed, then the other side is entitled to a compensation payment.

2. Does it cost me any money?

Both the buyer and the seller pay a Reservation Fee typically £250 + vat. This secures a £2,000 commitment to you both from each other. The reservation fee and commitment can vary. This amount represents the minimum fee and level of commitment.

3. How much money do I get if the other party withdraws?

Whatever level of commitment that was agreed by both parties of the transaction. Typically £2,000 but this can be increased.

4. Who enforces this agreement and makes the payment?

Gazeal will be responsible to make the payment to the innocent party and then recover it from the defaulting party.

5. Do you have to put down the £2000 upfront?

Neither the Buyer or Seller put down a deposit. Instead Gazeal ask for a Reservation Fee. (Minimum £250 + vat).

6. If it only costs £250, why would the Buyer be committed?

Although the amount of £250 + VAT is low, both parties are committed to a minimum payment of £2,000 if either breaks the agreement. These amounts can vary.

7. What happens if the Buyer withdraws through circumstances out of their control, or a poor survey?

The agreement makes provisions for various scenarios that would mean there would be no penalty for withdrawal.

Such as:

Down Valuation due to survey not re-negotiable
Bad Title
Chain Break Down above the Seller or Below the Buyer
General Reasons agreed by ‘Mutual Consent’ with Seller
The buyer is unable to get a Mortgage

8. How can the Seller withdraw without penalty?

There are numerous reasons for the Seller to withdraw without the potential liability such as:

Incorrect information given by the Buyer as to their position.
Agreed timescales not met by the Buyer
Chain Break Down below the Buyer
General reasons agreed by ‘Mutual Consent’ with the Buyer

9. How does the Agreement work in a Chain?

Once complete then the Buyer can start the agreement by making their Reservation Fee payment. If at any point the chain collapses then the agreement simply ‘PAUSES’. The agreement is NOT DEPENDENT ON ALL OF THE CHAIN having a reservation agreement.

10. What happens if the timescales are not met?

All pre-set timescales can be extended by ‘Mutual Consent’. In the absence of ‘Mutual Consent’ either party can walk away, without penalty, if there is no extension agreed.

11. What happens when the agreement pauses?

Either party can extend the agreement by ‘Mutual Consent’. In the event that there is no ‘Mutual Consent’ then either party can walk away with no penalty.

Reservation Agreements

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1. What are they?

Once the offer has been agreed, the Buyer and Seller both sign the agreement and are then bound by the terms within. If either party withdraw for any reason, other than what is agreed, then the other side is entitled to a compensation payment.

​

2. Does it cost me any money?

Both the buyer and the seller pay a Reservation Fee typically £250 + vat. This secures a £2,000 commitment to you both from each other. The reservation fee and commitment can vary. This amount represents the minimum fee and level of commitment.

​

3. How much money do I get if the other party withdraws?

Whatever level of commitment that was agreed by both parties of the transaction. Typically £2,000 but this can be increased.

4. Who enforces this agreement and makes the payment?

Gazeal will be responsible to make the payment to the innocent party and then recover it from the defaulting party.

​

5. Do you have to put down the £2000 upfront?

Neither the Buyer or Seller put down a deposit. Instead Gazeal ask for a Reservation Fee. (Minimum £250 + vat).

6. If it only costs £250, why would the Buyer be committed?

Although the amount of £250 + VAT is low, both parties are committed to a minimum payment of £2,000 if either breaks the agreement. These amounts can vary.

​

7. What happens if the Buyer withdraws through circumstances out of their control, or a poor survey?

The agreement makes provisions for various scenarios that would mean there would be no penalty for withdrawal.

Such as:

Down Valuation due to survey not re-negotiable

Bad Title

Chain Break Down above the Seller or Below the Buyer

General Reasons agreed by ‘Mutual Consent’ with Seller

The buyer is unable to get a Mortgage

​

8. How can the Seller withdraw without penalty?

There are numerous reasons for the Seller to withdraw without the potential liability such as:

Incorrect information given by the Buyer as to their position.

Agreed timescales not met by the Buyer

Chain Break Down below the Buyer

General reasons agreed by ‘Mutual Consent’ with the Buyer

9. How does the Agreement work in a Chain?

Once complete then the Buyer can start the agreement by making their Reservation Fee payment. If at any point the chain collapses then the agreement simply ‘PAUSES’. The agreement is NOT DEPENDENT ON ALL OF THE CHAIN having a reservation agreement.

​

10. What happens if the timescales are not met?

All pre-set timescales can be extended by ‘Mutual Consent’. In the absence of ‘Mutual Consent’ either party can walk away, without penalty, if there is no extension agreed.

​

11. What happens when the agreement pauses?

Either party can extend the agreement by ‘Mutual Consent’. In the event that there is no ‘Mutual Consent’ then either party can walk away with no penalty.

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