Reservation Process
Go Xchange - What is the Reservation Process?
The reservation process is a legally binding agreement between a buyer and seller which secures a property for a fixed period, giving both parties commitment to proceed.
It is designed to:
Reduce fall-throughs
Provide certainty for both parties
Prevent gazumping and last-minute withdrawals
Important:
This is not a contract for the sale of the property, but a separate agreement governing how the transaction is progressed.
How the Process Works
1. Offer Agreed
Once a price is agreed between buyer and seller, both parties are invited to enter into a reservation agreement.
2. Reservation Fee Paid
To secure the property, the buyer pays a reservation fee.
Typically 3% of the purchase price (including VAT)
Paid immediately upon agreement
In addition to the purchase price
Does not form part of the deposit
The property is only reserved once cleared funds are received.
3. Funds Held Securely
The reservation fee is:
Held in a secure client account
Managed by Go Property Solutions Ltd
Distributed at exchange in line with agreed commercial terms
4. Property Taken Off the Market
Once reserved:
The seller must stop marketing immediately
No other offers can be considered
Both parties commit to progressing the sale
5. Fixed Timescale to Complete
A reservation period is agreed (typically 90 days unless otherwise stated).
During this time:
Buyers arrange mortgage, surveys, and legal work
Sellers cooperate fully with the process
If no extension is agreed and the deadline passes:
The seller may re-market the property
The reservation fee may be retained
Buyer Responsibilities
By entering the agreement, the buyer agrees to:
Instruct solicitors within 5 working days
Apply for a mortgage within 7 days (if required)
Provide proof of funds
Progress the purchase diligently
Not pursue alternative property purchases
Seller Responsibilities
The seller agrees to:
Remove the property from the market
Not negotiate with other buyers
Instruct solicitors promptly
Act in good faith to complete within the agreed timeframe
Important – Reservation Fee
The reservation fee:
Is generally non-refundable
Is used to secure the property and commitment from both parties
May be forfeited if the buyer withdraws without valid reason
When Can a Buyer Withdraw Without Losing the Fee?
The fee may be refundable only in specific situations, including:
A serious undisclosed legal issue with the property title
A significant structural defect not previously disclosed
A down-valuation by a mortgage lender
Failure to obtain finance despite reasonable attempts
Collapse of a property chain outside your control
Evidence will be required in these cases.
Unreasonable Withdrawal
Examples of unreasonable withdrawal include:
Changing your mind without valid reason
Gazumping or gazundering
Refusing to proceed when everything is in place
In these cases:
The buyer may lose the full reservation fee
The seller may be compensated
If the Seller Withdraws
If the seller withdraws without valid reason:
The buyer receives a full refund
The seller may also pay additional compensation
What Happens at Exchange?
Once contracts are exchanged:
The reservation agreement ends
The reservation fee is released from the client account
Funds are distributed in line with the agreement
Role of Go Property Solutions Ltd
We act as:
The reservation partner and administrator
The holder of the reservation fee
A facilitator of the process
We are not a party to the sale contract itself.
Disputes
If a dispute arises:
Parties should first attempt to resolve it directly
If unresolved, it may be referred to an independent expert for determination
The decision will be final and binding
Legal Advice
Before entering into a reservation agreement, you should:
Seek independent legal advice
Ensure you fully understand the terms
Anti-Fraud Warning
Before sending any funds:
Always verify bank details by phone
Do not rely solely on email instructions
Questions
If you are unsure about any part of the reservation process, please contact us before proceeding.