A reservation fee, in the context of buying a property, is a fee that may need to be paid to a property developer to reserve a plot for a specific period.
In exchange for this fee the potential buyer as priority over the plot for the agreed period (typically between one and two months).
If the buyer ultimately ends up purchasing the property once it has been built, the reservation fee will be deducted from the final price.
If the buyer does not enter personal property the reservation fee is usually non-refundable.
Gaynor Haliday, Legal researcher
About the author
Gaynor Haliday is an experienced legal researcher and published author. She has had numerous articles published in the press and is a legal industry commentator.