Reservation Agreement and Intention to Purchase: What Are the Rules?

Article L-0099 · 07.10.2026 · 7 min. reading time · Joé Christian Ewrard

What is actually binding before the notary appointment?

The short answer is: In principle, the purchase of a property cannot be agreed in a binding manner by handshake, email or an ordinary written document. Anyone who undertakes to buy or sell a plot of land requires notarisation. This is stipulated by [Section 311b of the German Civil Code (BGB)](https://www.gesetze-im-internet.de/bgb/__311b.html).

This does not apply only to an undeveloped plot of land. Notarisation is also required when purchasing a house or condominium. A signed declaration of intent to purchase, confirmation of financing or agreement on the price does not replace the notarised purchase agreement.

Nevertheless, valid agreements can be made before the notary appointment. These may concern confidentiality, the provision of documents, the commissioning of an appraiser or the assumption of certain preparatory costs. Whether an individual clause is binding depends on its content. The title of the document is not decisive.

For buyers, this means that a promise such as “The property is yours” does not yet constitute a legally secured ownership position. For sellers, it means that even a credibly stated intention to purchase does not guarantee that the financing, review and notary appointment will actually be completed.

What does a reservation agreement provide?

A reservation agreement is intended to hold a property for a particular prospective buyer. For example, the estate agent may undertake to temporarily suspend marketing or refrain from arranging further viewings. This gives both parties time for financing, reviewing documents and preparing the contract.

However, its scope remains limited. An estate agent is normally not the owner of the property. The agent therefore cannot automatically guarantee that the seller will not sell to another prospective buyer during this period. If the owner is also to be bound, the owner must be included in the agreement. As soon as the agreement effectively compels a purchase or sale, the requirement for notarisation may once again apply.

A reservation is also not entered in the land register. It therefore does not protect the buyer in the same way as the subsequent priority notice of conveyance. Only this notice secures the claim to the transfer of ownership against subsequent dispositions following the notarised purchase agreement. The German Federal Chamber of Notaries therefore describes it as the actual land-register “reservation” of the property. [Information from the German Federal Chamber of Notaries](https://www.notar.de/themen/immobilien/kaufpreisfaelligkeit)

In practice, a reservation agreement should clearly state who is entering into it, which property it concerns, what must not take place during the reservation period and when the agreement ends. Equally important is the question of what happens if the financing falls through, the documents reveal new risks or the seller no longer wishes to sell.

Is a reservation fee permissible?

A reservation fee is not valid merely because it is set out in a separate document and has been signed. The specific terms, the consideration provided in return and the conditions for a refund are decisive.

The Federal Court of Justice objected to a pre-formulated agreement under which a reservation fee was to be retained without exception. In the case decided, the estate agent’s client received no significant benefit and the estate agent provided no consideration of corresponding value. The court considered this an unreasonable disadvantage. However, this does not mean that every conceivable reservation fee is automatically invalid. [Federal Court of Justice on reservation fees](https://juris.bundesgerichtshof.de/cgi-bin/rechtsprechung/document.py?Art=pm&Blank=1&Datum=2022&Gericht=bgh&file=dokument.pdf&linked=urt&nr=133492)

Before making a payment, buyers should therefore clarify exactly what the fee is being charged for. Will it be credited towards the purchase price? Will it be refunded if the seller withdraws? What happens if financing is not approved or significant new information about the property comes to light? Who receives the money, and is that person entitled to retain it?

A large payment or one that is irrevocably forfeited can create considerable financial pressure. It should not induce buyers to proceed with a purchase despite unresolved financing or identified defects. Anyone presented with such an agreement should have it reviewed by a lawyer if in doubt. The notary provides impartial advice on structuring the property transaction but does not represent the interests of one party alone.

What does a declaration of intent to purchase mean?

A declaration of intent to purchase documents that the buyer and seller are seriously preparing to enter into a purchase agreement. It often records the property, the proposed price, the status of financing, the desired handover date and any outstanding checks. The term Letter of Intent is also commonly used in business transactions.

A genuine declaration of intent is intended to set out the planned process without making the property purchase legally binding at that stage. Wording such as “subject to financing”, “subject to review of the documents” or “subject to the notarised purchase agreement” highlights outstanding matters. However, it is no substitute for a careful review of the entire document.

It becomes problematic if the declaration does not merely describe an intention but is intended to create an obligation to buy or sell at a later date. A binding preliminary agreement for the purchase of a property must generally also be recorded by a notary. Contractual penalties, large withdrawal payments or other financial disadvantages may also be legally problematic if they create strong pressure to enter into the purchase agreement.

A document may also be partly non-binding and partly binding. There may be no obligation to purchase, while provisions on confidentiality, exclusivity or costs are intended to be effective. It should therefore be stated explicitly which passages are intended to be legally binding. If in doubt, an individual review by a notary or lawyer is advisable.

Why does the requirement for notarisation protect both parties?

The formal requirement is not a mere formality. A property purchase has long-term financial and legal consequences. Notarial recording is intended to ensure that the content of the agreement is documented in full, explained and structured to allow legally secure completion.

A private signature, a scanned document or an email is not sufficient. Nor is mere certification of the signatures the same as notarial recording of the purchase agreement. If the legally prescribed form is not observed, the agreement concerning the purchase of the property is generally void. This also follows from [Section 125 of the German Civil Code (BGB)](https://www.gesetze-im-internet.de/bgb/BJNR001950896.html).

Protection also includes time to read the document. In the case of a consumer contract within the meaning of the law, the draft agreement should generally be made available to the consumer two weeks before it is recorded by the notary. This period is not a cancellation period. Its purpose is to allow the draft to be reviewed before signing, questions to be asked and professional advice to be obtained if necessary.

Once a notarised purchase agreement has been executed, it cannot simply be revoked because doubts arise or a better property has been found. Rights of withdrawal and conditions apply only if they are provided for by law or have been validly agreed. This is precisely why unresolved financing issues and identifiable risks should be addressed before the appointment.

What steps should buyers take before making a reservation?

First, it should be established what the reservation actually provides. Is only the listing paused, or are viewings and negotiations also suspended? Has the seller agreed? Are there other interested parties, or has a notary appointment already been arranged? Clear answers prevent false expectations.

The next step is financing. An initial assessment by the bank is helpful, but it is not always a final loan approval. Buyers should clarify which documents are still required and whether the bank has already assessed this particular property. A reservation should not lead buyers to view the status of their financing more favourably than it actually is.

The property documents and known risks should then be reviewed. Depending on the property, these include land register information, public-law building encumbrances, floor areas, permits, energy documents, utility connections, tenancies and identifiable defects. For houses with extensions, outbuildings or several parcels of land, it is particularly important to check precisely what legally forms part of the property being purchased and how it may be used.

In the Eifel, in Trier-Saarburg and along the border with Luxemburg, practical considerations also play a role. Some prospective buyers work in Luxemburg and obtain financing based on cross-border income arrangements. For rural properties, access routes, rights of way, outbuildings or additional areas of land may be crucial. Such matters should be clarified before an intention to purchase is treated as a supposedly firm commitment.

What should sellers consider regarding intentions to purchase?

For sellers, an intention to purchase is an important signal, but it does not yet constitute a successful sale. A prospective buyer may be convinced and still withdraw if the bank does not approve the financing, the family decides otherwise or the building inspection raises unresolved questions. This is frustrating, but prior to the notarised agreement it is generally part of the risk involved in selling.

Before marketing is stopped completely, the financing status should be verifiable. Sensitive documents do not have to be disclosed indiscriminately in the process. What matters is reliable communication about whether the buyer's own funds, financing partner and property assessment are aligned.

In the case of communities of heirs or multiple owners, it must also be clarified whether all parties wish to sell. One individual cannot speak on behalf of all owners if they lack the necessary authority to represent them. Family disputes often only emerge once the price, handover or inventory are discussed in concrete terms.

An estate agent can moderate discussions, organise documents and identify misunderstandings at an early stage. However, they cannot guarantee a bank's decision, agreement within a family or completion before a notary. Good brokerage therefore means openly identifying uncertainties and defining the next verifiable step.

When is genuine security established?

The decisive legal commitment arises when the purchase agreement has been validly notarised. The notary then initiates the agreed steps required to complete the transaction. This regularly includes registering a priority notice of conveyance, which secures the buyer's claim to the transfer of ownership.

Even after notarisation, the buyer does not immediately become the owner. The transfer of ownership is only registered as part of the subsequent completion process. As a general rule, the purchase price should only be paid once the contractual conditions for payment have been met and the notary's notice confirming that payment is due has been issued.

Until the notary appointment, precise wording is therefore important. “Reserved”, “agreed” and “purchased” describe legally distinct situations. Those who understand these differences can negotiate without a false sense of security or putting unnecessary pressure on the other party.

Before signing, ask for an explanation of the intended effect of the document, who will actually be bound by it and what happens if the transaction is called off. Then review the financing and property documents, and only then commission the draft notarised purchase agreement. PRIOCASA can coordinate the process in the Eifelkreis Bitburg-Prüm, Trier, Trier-Saarburg, the Vulkaneifel and along the border with Luxemburg; legal or tax advice on individual cases should be obtained from a notary, lawyer or tax adviser.

Frequently Asked Questions

Can the seller sell to someone else despite a reservation?

That depends on who entered into the reservation agreement and what it says. An agreement with the estate agent alone does not automatically bind the owner and provides no protection in the land register. In the event of a dispute, a lawyer should review the specific agreement.

Is an agreement to purchase by email binding?

An email does not replace notarisation when purchasing a property. However, it may provide evidence of the status of negotiations and contain separate agreements. Emails should therefore also be worded clearly.

Do I have to pay a reservation fee?

Not every reservation fee requested is legally valid. Relevant factors include the service provided in return, the refund provisions and the specific contractual arrangements. If in doubt, do not sign or pay until a legal review has been carried out.

Can I withdraw from a notarised deed of sale within two weeks?

There is no general right of withdrawal of this kind for a notarised property purchase. The frequently mentioned two-week period relates to the prior provision of the draft agreement for certain consumer contracts. Any right to withdraw after notarisation must arise from the law or the contract.

Who pays for the draft agreement if the purchase does not proceed?

Liability for the costs may depend on who instructed the notary, what work has already been carried out and why the transaction falls through. If possible, clarify who may be responsible for the costs directly with the notary’s office before commissioning the draft. In the event of a dispute over the costs, seek legal advice.

Topics: reservation agreement, declaration of intent to purchase, property purchase, formal requirements, notary, reservation fee, Eifel, Trier

Responsible for this article: Joé Christian Ewrard — Owner & IHK-certified estate agent, PRIOCASA Immobilien & Finanzservice. Last updated: 07.10.2026. The draft was created with the support of artificial intelligence and was reviewed and approved before publication (AI Transparency). This post does not replace legal or tax advice; for individual questions, please contact a notary, lawyer, or tax advisor.

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