Example
What does it look like in practice?
Two buyers are reservation apartments at the planning permission stage. One only signs a preliminary contract for future sale, and the right of construction is transferred to the other with a notarial deed. They both say "I bought on the green", but the rights vested and the time of vesting are different.
Physical progress does not equalize contracts.
What is it commonly confused with?
Paying a price and signing a preliminary contract does not automatically make the buyer the owner of the apartment. A building permit does not guarantee completion, and the popularity of the investor does not replace the verification of the company, the land and the specific contract.
"Reserved flat" can only mean a contractual promise, not a separate conveyed property.
Why does it matter?
The buyer assumes both construction, financial and contractual risk, as well as risk related to the rights to the property, because the payments precede the completed object. It should understand how the funds contributed are protected in the event of delay, project change, encumbrances or default.
The earlier the stage, the more important are vendor verification and measurable milestones.
What to ask
What should you check next?
Clearly state who owns the land, who holds the right to build, who the seller is, how the future unit is identified, which documents trigger payment and when title is transferred. Check encumbrances and financial dependencies before the first non-refundable payment.
Contract consequences for delay, modification, suspension and inability to complete with independent counsel.