Example
What does it look like in practice?
A buyer pays BGN 3,000 to an intermediary for a "reservation", but the form allows a lien on unapproved credit and does not oblige the owner to sign a preliminary contract. Another contract expressly sets an amount as a deposit between seller and buyer and governs the consequences of default.
In both cases, the sum may colloquially be called a "down payment", but the rights and obligations of the parties are different.
What is it commonly confused with?
Not every deposit is double refunded and not every reservation fee is deducted from the price. The fact that a document is short or titled "application" does not mean that there are no binding terms.
Mortgage approval, successful due diligence and receipt of a building document are not automatic conditions for return unless expressly agreed.
Why does it matter?
This is usually the buyer's first non-refundable payment and is often made before a full inspection. Unclear reasons can turn the need to give up a risky property into a financial loss.
A good clause ties the money to a specific property, parties, term, inspections and next step.
What to ask
What should you check next?
Before payment, find out who the counterparty is and whether they have the right to reserve the property. Record the deadline, documents and inspections, grounds for refusal, return, deduction from price and responsibility for refusal of each party.
Have an independent lawyer review the text before translation; the basis of payment must match the signed contract.