Common use of Reservation Agreement Clause in Contracts

Reservation Agreement. Developer is engaged in the planning and development of the Community and intends to enter into nonbinding Reservation Agreements upon approval of the Conditional Use Permit (“CUP”) for the Community. Shortly following issuance of the CUP, the Developer shall send to the Prospective Purchaser, depending upon its respective position in line in relation to other prospective purchasers, a notice of opportunity to select a Townhome within the Community and to enter into a Reservation Agreement (“Notice of CUP and Opportunity to Select”). The Prospective Purchaser shall have a certain number of hours from the time the Developer sent the notice to identify the Townhome and to return the signed nonbinding Reservation Agreement to the Developer. The Developer shall expressly specify the time period for responding to the Notice of CUP and Opportunity to Select. The Prospective Purchaser shall then deposit any required refundable reservation deposit with the Escrow Agent within three (3) days of the date of the original notice. IF AFTER RECEIVING THE NOTICE OF CUP AND OPPORTUNITY TO SELECT THE PROSPECTIVE PURCHASER FAILS TO TIMELY IDENTIFY A TOWNHOME, RETURN THE RESERVATION AGREEMENT, AND/OR MAKE THE DEPOSIT, THEN PROSPECTIVE PURCHASER SHALL BE DEEMED TO HAVE ELECTED TO NOT ENTER INTO A RESERVATION AGREEMENT AND THIS RESERVATION OF INTEREST SHALL AUTOMATICALLY TERMINATE, whereupon Developer shall give notice to Escrow Agent and Escrow Agent is authorized and directed to return the Deposit to Prospective Purchaser. Prospective Purchaser shall have no further rights in relation to this Reservation of Interest at that time.

Reservation Agreement. Developer is engaged in the planning and development of the Community and intends to enter into nonbinding Reservation Agreements upon approval of the Conditional Use Permit (“CUP”) for the Community. Shortly following issuance of the CUP, the Developer shall send to the Prospective Purchaser, depending upon its respective position in line in relation to other prospective purchasers, a notice of opportunity to select a Townhome Unit within the Community and to enter into a Reservation Agreement (“Notice of CUP and Opportunity to Select”). The Prospective Purchaser shall have a certain number of hours from the time the Developer sent the notice to identify the Townhome Unit and to return the signed nonbinding Reservation Agreement to the Developer. The Developer shall expressly specify the time period for responding to the Notice of CUP and Opportunity to Select. The Prospective Purchaser shall then deposit any required refundable reservation deposit with the Escrow Agent within three (3) days of the date of the original notice. IF AFTER RECEIVING THE NOTICE OF CUP AND OPPORTUNITY TO SELECT THE PROSPECTIVE PURCHASER FAILS TO TIMELY IDENTIFY A TOWNHOMEUNIT, RETURN THE RESERVATION AGREEMENT, AND/OR MAKE THE DEPOSIT, THEN PROSPECTIVE PURCHASER SHALL BE DEEMED TO HAVE ELECTED TO NOT ENTER INTO A RESERVATION AGREEMENT AND THIS RESERVATION OF INTEREST SHALL AUTOMATICALLY TERMINATE, whereupon Developer shall give notice to Escrow Agent and Escrow Agent is authorized and directed to return the Deposit to Prospective Purchaser. Prospective Purchaser shall have no further rights in relation to this Reservation of Interest at that time.