What should I clarify if asked to pay a reservation deposit?

Establish what the payment does

Ask for a written proposal identifying the property, the parties, the amount requested and who will receive and hold it. Clarify whether the seller will stop marketing, for what agreed period or conditions, and what happens if another offer arrives.

Have your lawyer explain whether the payment forms part of the price, pays for a separate service or has another purpose. Ask what commitments you and the seller would make by signing or paying, rather than relying on an oral description of the arrangement.

Examine failure scenarios

The written terms should be reviewed for what happens if legal or technical checks reveal a problem, finance is unavailable, documents cannot be supplied or either party withdraws. Clarify who decides whether a condition has been met, how any refund is requested and what evidence is required.

Verify the recipient’s authority and banking instructions independently before transferring funds. Ask for an appropriate receipt and keep the signed terms and payment record together. Have your lawyer confirm the legal effect and suitability of the proposed arrangement; do not assume money is protected simply because an intermediary receives it.