What is a Lot Reservation Agreement?
This contract is used when a deposit is necessary to hold a property for a specified amount of time, usually pending financing, plat approval, or Title. This standard contract is used for reserving a home site in Estancia, where prospective buyers benefit from below market pricing. It is unconventional because the Plat is pending final approval by the city and therefore parcel numbers, and tax id numbers, have yet to be issued. Therefore, title cannot be transferred and the buyer cannot obtain a title policy. The contract is legally binding and obtains clauses which release the buyer from the transaction, with a full refund, if seller cannot deliver title to the property.
