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Before you pay a reservation fee, establish exactly what you are reserving, which documents will bind you, what the price includes, and what happens if the home changes or is late. Ask for written answers and have a local property lawyer or conveyancer review the reservation agreement, sale contract and building contract before you sign or transfer money.
“Reservation” has different legal meanings. It might be a short, cancellable hold on a plot, or it might sit alongside a binding sale contract, land contract or construction agreement. Refund rights, cooling-off periods, deposit protection, warranty coverage and delay remedies depend on the property’s jurisdiction, the contract and any applicable code. Use the questions below to expose those terms before committing.
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What am I actually reserving?
Start with the identity of the property and the legal document. Ask the sales representative to write down the development name, plot or lot number, address, tenure, parking or storage allocation, purchase price and expected completion. Confirm whether the document is only a reservation agreement or whether you are also signing a sale contract, land contract, building contract or options agreement.
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Some developments use one agreement for land and another for construction. Ask which contract controls if the documents conflict, whether both must be signed by a deadline, and what you owe if you withdraw from one but not the other. NSW Government off-the-plan guidance specifically warns buyers to understand separate land and construction contracts and the consequences of withdrawing.
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Ask what the reservation fee secures
- What exact property and price are held?
- How long does the reservation last?
- Until what date is the quoted price valid?
- What event ends the reservation: expiry, your cancellation, the builder’s cancellation or exchange of contracts?
- Is the fee credited against the deposit or purchase price?
- Who holds the money, in which account, and when can it be released?
- What deductions apply if you cancel, finance is refused or the builder does not proceed?
Request the written refund and forfeiture clause, not a verbal assurance. The New Homes Quality Board (NHQB) code requires covered reservation agreements to state the fee, property, price, end date, price-validity period and deduction or refund treatment.
Check cooling-off rights by jurisdiction
The NHQB code’s covered agreements include a cooling-off period of at least 14 days and a full reservation-fee refund when the buyer cancels during that period. That is a UK code provision within its scope, not a worldwide rule. Do not assume the same period applies in another UK development, state or country; ask your adviser to identify the exact statutory or contractual right for your home.
What is included in the price?
Ask for the complete specification, drawings and inclusions schedule before you compare prices. A low headline price can omit items another builder includes.
Get an itemised inclusions list
Have the builder identify structural materials, insulation and windows; kitchen cabinets, worktops and appliances; bathroom fittings; heating, cooling and ventilation; flooring, paint and wall finishes; internal and external doors; lighting and electrical points; landscaping, fencing and driveways; utility connections; parking, storage and shared facilities. Ask whether estate management, service or infrastructure charges apply after completion.
Separate fixed prices from allowances
Mark every item as fixed, provisional, an allowance or an optional upgrade. Ask how an allowance is calculated, who chooses the replacement item if it is unavailable, and whether you pay the difference plus a builder’s margin. Confirm taxes, permits, connection charges, inspection fees and other third-party costs that are excluded. Ask when selections must be made and what happens if you miss the deadline.
Record choices and upgrades
Victoria’s building-contract guidance recommends putting materials, appliances and fittings in the contract plans and specifications. Ask for model numbers, performance standards, colours and installation details. Each upgrade should show its price, tax treatment, payment date and effect on completion. Keep the signed schedule with the contract; marketing brochures and display homes should not be treated as promises unless incorporated in writing.
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Which plans and specifications control?
Ask which dated drawings, room dimensions, site plan, levels, energy commitments and specification documents form part of the agreement. Confirm how discrepancies are resolved and whether a later document can replace an earlier one.
Understand permitted substitutions
Ask whether the builder may substitute materials, appliances, fixtures, landscaping or layouts; what standard must an alternative meet; and who decides that it is equivalent. Find out whether a substitution changes the price, warranty, appearance, energy performance or completion date.
Define a major change
Ask what counts as a material or major change, whether your written consent is required, and whether you can cancel or receive a refund if the change crosses that threshold. NSW guidance highlights design changes and buyer consent. The NHQB code provides written-notification requirements and specific rights for changes meeting its definition of a major change. Victoria requires variations to follow the contract procedure and says applicable variations should be documented. These protections are not identical everywhere.
Make every variation traceable
Do not rely on a site conversation. Require a dated variation showing the revised drawing or specification, price adjustment, tax, schedule impact and signatures. Keep a change log so the final handover can be checked against the agreed version.
When will the home be ready, and what if construction is late?
An estimated month is not the same as a contractual completion date. Ask for the planned construction start, key milestones, practical or legal completion, handover and move-in dates.
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Identify extension events such as weather, shortages, utility delays, planning changes, variations, industrial action or buyer-caused delays. Ask how notice must be delivered, how many days can be added, and what evidence the builder must provide. Ask whether an earlier completion can require you to close sooner than expected.
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Check long-stop, sunset and cancellation terms
Find the date after which you may cancel, whether the builder can extend it unilaterally, and whether your deposit is returned. NSW off-the-plan guidance recommends checking completion and sunset dates, remaining milestones, finance timing and delay rights. Do not assume a sunset clause automatically favours the buyer; have the lawyer explain who can exercise it and what notice is required.
Price the consequences of delay
Ask who bears rent, storage, temporary accommodation, loan-extension fees and rate-lock costs if handover slips. Victoria explains that contracts may provide extensions and liquidated damages, and that a delay amount should be a reasonable estimate of expected loss under its guidance. Another jurisdiction may provide a different remedy—or none—so read the actual clause rather than relying on a sales estimate.
Can I inspect the property during construction?
Ask when visits are permitted, who must attend, what safety induction or protective equipment is required, and whether an independent building inspector may accompany you. Confirm whether inspections are allowed at useful stages, such as framing, services before walls close, waterproofing and pre-handover, rather than only at the end.
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Agree how defects are recorded
Ask who creates the defects list, how photographs and test results are attached, the deadline for repairs, and whether unresolved defects affect handover or retention of money. The NHQB code provides an opportunity for a pre-completion inspection and requires safety information for construction-site visits. Manitoba consumer guidance recommends discussing stage inspections and considering a professional inspector. Access rights still depend on your contract and local rules.
Clarify handover standards
Ask what tests and certificates you receive: occupancy or compliance certificates, appliance manuals, warranties, energy documentation, keys, remote controls and maintenance instructions. Confirm whether you can refuse or defer completion for serious defects and how minor items are managed after possession.
How are deposits and progress payments protected?
Obtain a schedule showing each amount, due date, recipient, account or trust arrangement, release condition and refund rule. Ask whether a payment is tied to a defined stage of work and who independently verifies that stage.
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Match payments to completed work
Manitoba guidance advises monitoring payments against work actually completed. Ask for photographs, certificates or an inspector’s sign-off before each progress payment. Never let an informal request for an early payment replace the contractual stage definition.
Ask what happens if the builder fails
Find out whether deposits and progress payments are insured, held in trust, bonded or otherwise protected if the builder becomes insolvent, abandons the project or cannot obtain title. Ask whether protection covers only money paid, or also the cost of completing the home and consequential losses.
Check insurance prerequisites
Victoria advises buyers to verify that progress payments relate to completed work and, for covered domestic building contracts, to avoid paying a deposit before receiving the required domestic building insurance certificate. Thresholds and schemes vary, so confirm the rule for your contract rather than importing a figure from another jurisdiction.
What warranty, insurance and after-sales support apply?
Ask for the name of every provider, the start date, duration, covered components, claim process, response times and exclusions. Separate three questions: who fixes defects, who protects your money, and who helps if the builder cannot finish. A defect warranty does not necessarily provide completion or deposit protection.
Read exclusions carefully
The US Federal Trade Commission explains that builder warranties differ from paid service contracts, often exclude household appliances and may not reimburse relocation costs while repairs are carried out. Ask who warranties appliances and owner-selected upgrades, and whether maintenance obligations can void coverage.
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Manitoba warns that a home warranty may begin only at possession and may not protect against late or incomplete construction or bankruptcy before possession. Ask whether there is separate pre-completion, deposit or insolvency protection and the deadline for notifying defects.
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Test the complaints route
Ask for a named contact, written complaints process, escalation deadline and independent dispute-resolution scheme. New-homes codes call for accessible after-sales and complaints procedures; obtain the code or warranty booklet that applies to your home.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Who should review the documents?
Before signing or paying, instruct a local property lawyer or conveyancer experienced with new-build transactions. NSW Government guidance recommends legal advice before signing documents or paying money, and Victoria recommends independent legal advice on building contracts.
Ask the adviser to explain cancellation and cooling-off rights, reservation-fee deductions, deposit protection, title or tenure, completion and sunset dates, design-change powers, default clauses, dispute procedures and any separate land and construction agreements. Request a written list of every deadline and condition that could cost you money or remove a cancellation right. An independent building inspector can separately assess the specification, workmanship and defects; legal and technical reviews solve different problems.
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How should I compare two builders or developments?
Use identical questions and compare written terms, not display-home impressions or the headline price.
| Comparison point | What to record for each builder |
|---|---|
| Reservation | Fee, holding period, price-validity period, refund or deduction rules, and how funds are held |
| Inclusions | Specification, appliances, finishes, landscaping, parking, utilities, taxes, allowances and upgrade margins |
| Plans and changes | Dated documents, substitution rights, consent threshold, variation pricing and cancellation rights |
| Timing | Milestones, completion and handover dates, extension events, long-stop or sunset date and delay remedies |
| Payments | Deposit, stage definitions, verification, insurance, trust or bond protection and insolvency outcome |
| Inspection | Site-visit rules, independent inspector access, pre-completion inspection and defect deadlines |
| Warranty and service | Provider, start date, term, exclusions, claim route, response times and dispute escalation |
Consumer Affairs Victoria’s quote guidance recommends checking whether a cheaper quote omits wanted materials or finishes and asking previous clients about timing, communication, price increases, written changes and quality. Seek references for homes comparable in size and contract type, and ask whether the quoted price remained the final price.
Questions to take to the reservation meeting
- Which exact plot, title, plans and specifications am I reserving?
- What documents become binding today, and are land and construction contracts separate?
- How much is the reservation fee, where is it held, when is it refunded and what deductions apply?
- What is included, what is an allowance, and what costs sit outside the quoted price?
- Which changes or substitutions can you make without my consent?
- What are the construction milestones, contractual completion date, extension events and long-stop date?
- What are my rights and costs if the home is late or the design changes materially?
- When may I visit, can I bring an independent inspector, and how are defects corrected?
- When are deposits and progress payments due, and what protects them if you fail?
- Who provides defect, deposit and completion protection, and when does each begin?
- Which complaint and dispute process applies?
- May my lawyer review every document before the fee is paid?
Jurisdiction checks you should not skip
| Location or guidance | Relevant points to verify |
|---|---|
| New South Wales | Separate land and construction contracts, reservation and withdrawal consequences, design-change consent, completion and sunset dates, finance and delay rights; obtain legal advice before signing or paying. |
| Victoria | Plans and specifications, documented variations, progress payments for completed work, domestic building insurance requirements, contract extensions and reasonable liquidated-damages provisions. |
| UK developments covered by the NHQB code | Reservation information, at least 14 days’ cooling-off with a full fee refund, written information about major changes, construction-site safety and a pre-completion inspection. |
| Manitoba | Stage inspections, payment protection, professional inspection, and the possibility that warranty starts at possession without covering delay, incomplete construction or pre-possession insolvency. |
| United States | Warranty scope and exclusions, appliance responsibility, claim steps and the absence of relocation-cost coverage in many new-home warranties, as explained by the Federal Trade Commission. |
These examples illustrate why a deadline or remedy from one jurisdiction must not be copied into another. Confirm the governing law, applicable consumer code, warranty scheme, building rules and contract edition for the exact property.
Warning signs before you pay
- You are pressured to transfer money before receiving the reservation agreement or full specification.
- The fee is described as “non-refundable” but no deduction clause or holding arrangement is provided.
- The builder will not identify the plot, price-validity period or documents that become binding.
- Plans say “or equivalent” without an objective standard or consent process.
- Completion is given only as a marketing month with no milestones, extension rules or long-stop date.
- Progress payments are requested ahead of defined work stages or without insurance evidence where required.
- Site access, independent inspection and defect repair are refused or left entirely to verbal promises.
- Warranty information omits the provider, start date, exclusions or insolvency protection.
If any answer remains unclear, pause the reservation. The cost of a local legal and independent technical review is small compared with an unrecoverable fee, an unfinanceable change or a delayed home you cannot safely occupy.
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