Question from Rhobert 

Hi.  What if I paid the reservation fee today, and I backed out the following day, can I get a refund of my reservation fee? 

Answer:

Hello Rhobert.

It depends.

Did you reserve with just a Letter Of Intent (LOI)? Then yes, it's possible to have your reservation refunded. But talk to your broker/realty on how much can be refunded or what options can be offered. If they're generous, they may refund in full. But they may also have a good reason to not refund your payment in full, or not at all, as they may use the funds for administrative purposes. Such as preparations of documents, scheduling of booking, etc. 

But if you've made a formal reservation and you've been issued with an official receipt, it's commonly not refundable.

It is important to understand that there has to be a commitment on the buyer's part to purchase a property before paying a reservation fee.