How important are reservations and preliminary contracts in the process of selling property in Hamburg?

Reservation or preliminary contract in property sales: What are the differences?

Reservation agreements and preliminary contracts are fundamentally different instruments, both legally and in practical terms:

If a potential buyer asks you for a reservation, you can provide a written commitment – in exchange for a reservation fee – not to offer or sell the house or apartment in Hamburg Wilhelmsburg to anyone else for a defined period. This fee should not exceed 5 to 10 percent of the standard broker’s commission, as higher charges could exert undue pressure on the buyer to complete the purchase, according to current legal rulings. It’s important to note that a reservation does not constitute a legally binding purchase agreement. If the interested party withdraws from their intent to buy, you as the owner – or your real estate agent – may retain the fee, but the transaction’s cancellation has no further legal consequences.

It’s a different matter when a preliminary contract is signed with the buyer. This contract legally obliges both parties to complete the agreed property transaction within a specified timeframe. Withdrawal from the preliminary contract is only possible under exceptional circumstances – such as in cases of undue hardship or deliberate deception. Just like the final purchase agreement, a preliminary contract must be notarized to be legally valid. The associated costs typically amount to around 1 to 2 percent of the final purchase price. This legal enforceability makes the preliminary contract the most secure option available in Germany to ensure the completion of a property sale.

Whether a reservation or a preliminary contract is the better option for your property sale in Hamburg Wilhelmsburg depends on various factors – such as how many other potential buyers have already expressed interest, or what specific reasons are presented in favor of such a pre-agreement. The real estate team at Engel & Völkers Hamburg will be happy to support you in making the best possible decision for your individual situation. Feel free to get in touch with us here!

Advantages of reservations and preliminary contracts for property buyers and sellers

When a potential buyer wishes to reserve a house or apartment in Hamburg Wilhelmsburg or enter into a preliminary contract, various motivations may be behind this request. Typical examples from our real estate agents' day-to-day experience include financing that has not yet been finalized, or when the buyer’s previous property has not yet been successfully sold. Extended stays abroad or the absence of consent from other parties involved in the purchase can also lead interested buyers to pursue such agreements.

As a seller, preliminary contracts and reservation agreements can also serve your interests effectively. Especially in fast-paced markets like Hamburg, individual properties often attract numerous viewings—many of which do not involve serious purchase intent. To make the sales process more efficient, a reservation can be agreed upon after a certain point—such as a second viewing—to help ensure that the buyer doesn’t back out shortly before the contract is signed. In such cases, the retained reservation fee can compensate your real estate agent for their time and effort.

Are you currently planning to sell a house or apartment in Hamburg, or would you like more detailed information on reservation and preliminary contracts? Engel & Völkers Hamburg warmly invites you to a free and non-binding consultation, where our real estate agents will answer all your questions personally and professionally. To schedule your appointment, simply give us a call at +49 40 767 950 80. We look forward to hearing from you!