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.
Rates and values
Varies based on property and agreement but is usually between €3,000 to €10,000. The reservation fee can go up to 10% of the property value for some properties.
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. The terms of refundability should be clearly understood. Reservation deposits are common in off-plan purchases. Losing the deposit is a risk if the buyer backs out without just cause.