Glossary · The buying process
Reservation fee
Also called: Booking fee, Holding deposit
In short
A fixed sum paid to take a unit off the market for a short period while you review the contract. It counts toward the price if you go ahead.
What it means
The reservation fee is the first payment in a purchase. In return the developer holds one unit at one price for a stated period, often one to four weeks. If you sign the contract, the fee is deducted from the contract payment.
When it is returned
Reservation contracts for condominium units are regulated by Thai consumer protection rules, which list cases in which the fee must be returned. Outside those cases, a buyer who decides not to sign normally loses it. The reservation form is where this is written down.
What the form should say
- The unit, the price and any promotion that is part of the offer.
- How long the reservation lasts and the date by which the contract must be signed.
- When the fee is returned.
- The developer as the party receiving the money, with an official receipt.