The Letter of Reservation (Reservierungsvereinbarung) is a crucial document in German real estate transactions, typically used in the preliminary stages of property purchases. It serves as an intermediate step between initial interest and the final purchase agreement, providing security for both parties during negotiations. This document is particularly relevant when dealing with new developments, off-plan properties, or high-demand real estate where buyers need to secure their interest before proceeding with full due diligence. The letter typically includes details of the property, reservation period, any reservation fees, and basic terms of the intended transaction. While not as formally binding as a purchase agreement, it creates certain legal obligations under German law and often requires careful consideration of various aspects of the Bürgerliches Gesetzbuch (German Civil Code). The document is especially common in commercial real estate transactions and new residential developments where the property may not be immediately ready for a full purchase agreement.

1. Parties: Full legal names and addresses of both the potential buyer (Interessent) and the seller/developer (Verkäufer/Bauträger)

2. Property Details: Precise description of the property being reserved, including address, land register details, and specific unit information if applicable

3. Reservation Period: Clear specification of the duration for which the property will be reserved, including start and end dates

4. Reservation Fee: Amount of the reservation fee, payment terms, and conditions for refund or application to purchase price

5. Exclusivity Terms: Confirmation that the seller will not offer the property to other parties during the reservation period

6. Intended Purchase Price: Indication of the expected purchase price for the property, subject to final agreement

7. Next Steps: Overview of the process toward the final purchase agreement, including expected timeline