Reservation Deposit
A reservation deposit (fee) in Cyprus is an upfront payment made by a buyer to reserve a property, typically in off-plan or new developments. This deposit shows the buyer's commitment and is often part of the purchase price. It's usually refundable under specific conditions.
How much is the reservation fee in Cyprus?
The reservation fee varies depending on the property and agreement but is usually between €3,000 and €10,000. For some properties, it can be 10% of the property value.
Why it is important
Reservation deposits in Cyprus secure a buyer's interest in a property and can be crucial in competitive markets. They demonstrate seriousness to sellers or developers.
Reservation deposits are standard in off-plan purchases, and if the buyer withdraws without cause, the deposit may be forfeited. It is essential to understand the terms of refundability clearly.
