A reservation deposit is a contract, not a courtesy. What it can cost in Spain, Greece and Turkey, which checks come first and how to word the reservation.
The first money in a foreign purchase is usually a reservation deposit, paid when you have only seen photos and a price. It feels small and reversible. In several countries it is neither: the deposit sits inside a contract, and walking away can cost you the money. The sequence matters more than the amount, and the safe order is to check first and pay second. This is general information, not legal advice; the rules below are summarised from law-firm and property-advisory sources and from the Spanish Civil Code as quoted in legal summaries, so ask a local lawyer to confirm them for your case.
A deposit is a contract, not a hold
Whether a deposit can be taken back depends on the law and the wording, and both differ.
- Spain. Under article 1454 of the Civil Code, a deposit paid with a sale can allow either side to withdraw: the buyer who withdraws loses the deposit, and the seller who withdraws returns it doubled (arras penitenciales). Courts read these clauses narrowly and the exact wording matters. A legal dictionary of the Spanish Royal Academy cites a Supreme Court ruling from 2014 under which a deposit whose type is not clear is treated as this withdrawal deposit. Do not assume "refundable" if the contract does not say so.
- Greece. After agreeing a price, the parties usually sign a preliminary agreement (prosymfono) with a deposit that sources describe as around 10%. Advisory sites report that a buyer who withdraws without a contractual reason generally loses it, that a seller who withdraws typically owes double, and that there is no statutory cooling-off period. Sources differ on whether the deposit is held by the buyer's lawyer, so ask.
- Turkey. The promise-of-sale agreement is a preliminary contract, not the transfer. Ownership passes only on registration at the land registry. One source puts the deposit at 5% to 10% of the price, and notes that the agreement is stronger when it is recorded on the title deed, so ask the lawyer whether it will be.
The point is the same everywhere: before paying, you want to know what it costs to leave.
What must be checked first
These are tasks for your own independent lawyer, not for the agent. See the notary or the lawyer: who do you need and the lawyer recommended by the agent.
- Who the seller is. The name and identity of the person selling must match the registered owner. If someone signs for the owner, the power of attorney must be checked with the notary that issued it.
- What the register says. In Spain, the extract from the property register (nota simple) shows the owner and registered charges. In Greece, the lawyer checks the cadastre and land registry for mortgages, seizures, annotations and third-party rights such as usufruct, with some guides saying the search covers at least the previous 20 years. In Turkey, the title deed (tapu) shows the owner and a mortgage lien (ipotek), and the name should match the seller's identity document.
- Debts and charges that follow the property: mortgage, unpaid community fees and taxes. Double sales and hidden debts covers this in detail.
- Planning and occupancy. A building can be registered and still be partly illegal. In Greece, an engineer checks technical legality, and sources note that unlegalised extensions can make a transfer impossible. In Spain, ask for the licence of first occupation and the building permits.
- Whether you may buy at all. In Turkey, sources mention military clearance near restricted zones.
The pre-purchase checklist, the Spain resale checklist and the Turkey resale checklist go through them.
Why paying first costs so much
- The contract is signed before the facts are known. If a charge or a missing permit appears afterwards, you are in a dispute where you are the party who may have withdrawn.
- Your leverage is gone. A seller or agent who holds your money has no reason to hurry through the checks, and you have lost the easiest way to leave.
- Fraud works on the same gap: a deposit for a property the seller does not own, see property scams abroad.
- Pressure is the signal. "Another buyer is paying today" is the sentence to treat as a reason to slow down. A genuine owner can wait a few days for a title extract.
The safer order
1. Ask the agent for the address, the registry reference and the seller's name. Do not pay anything yet. 2. Have your lawyer obtain the register extract and confirm that the seller is the owner, with no unexpected charges. 3. Have the lawyer read the reservation or preliminary agreement before you sign. 4. Pay the deposit to the lawyer's or notary's account, or a regulated escrow account, not to a private person, after phoning to confirm the details. See currency and payment. 5. Make the later steps depend on the remaining checks, and only then pay a larger deposit.
What the reservation should say
- The names of the parties, the property identified by its registry reference, and the price.
- A deadline for the checks, and a clause that the deposit is returned in full if the checks fail or a charge is found. Ask the lawyer how to word it in that country.
- Who holds the money, and in which account.
- Nothing that binds you to one agent or to a lawyer chosen by the seller. See contracts and forms that bind you abroad.
How we help
D.H. Realting is an independent Warsaw-based consultant. We introduce local lawyers whom we have checked, so the title review happens before the first deposit, not after.