Arras Contract
Contrato de Arras in Spain for Buyers
Before signing a Contrato de Arras in Spain, learn deposit risks, legal checks, mortgage clauses, and why an independent lawyer matters.
What an Arras Contract Means
A Contrato de Arras is a private contract between buyer and seller. It normally comes before the notary completion, but it already commits both sides to the purchase terms.
Foreign buyers often hear the word "reservation" and think the arras is a polite holding form. That is dangerous. The contract sets the agreed price, deposit amount, completion deadline, buyer and seller obligations, property details, payment method, and the consequences if either side fails to complete.
Once signed, the property is usually taken off the market and the buyer pays a serious deposit. If the buyer later changes their mind, misses the notary deadline, or cannot get finance, the deposit may be lost. If the seller withdraws, the seller may have to return double the deposit. The exact result depends on the type of arras and the wording your lawyer negotiated.
Do not sign it because an estate agent says it is standard. Standard contracts still need checking. Start with our first-time buyer guide, then have an independent Spanish property lawyer explain the specific contract before money moves.
The Three Types
The word arras does not tell you enough by itself. Spanish contracts can use different arras forms, and they do not all create the same exit rights. This is why the heading, clauses, and penalty wording matter.
| Type | Usual Effect | Buyer Risk |
|---|---|---|
| Arras penitenciales | Most common. Buyer loses the deposit if they withdraw without valid reason; seller returns double if they withdraw. | High if finance or legal conditions are missing. |
| Arras confirmatorias | Confirms the sale agreement. Withdrawal can lead to demands for completion or damages. | Less predictable because the dispute can move beyond the deposit. |
| Arras penales | Includes penalty clauses. The contract wording decides how penalties apply. | Depends heavily on the exact clause and deadline wording. |
Most resale purchases use arras penitenciales because both sides understand the basic bargain: buyer walks away and loses the deposit; seller walks away and pays double. But even this familiar structure can be changed by the text. A finance clause, a legal-condition clause, or a vague deadline can change the outcome.
For mortgage buyers, the biggest trap is signing before the bank has issued final approval. Pre-approval is not final approval. If the bank refuses finance after you sign, you may lose the deposit unless the contract says the purchase depends on mortgage approval. Read our Spain mortgage guide before treating a bank conversation as a green light.
Checks Before You Sign
Confirm Title and Ownership
Order a fresh Nota Simple from the Land Registry. It should confirm the registered owner, property description, mortgages, liens, embargoes, and any registered charges.
Check Debts and Restrictions
Ask for community-fee status, IBI receipts, utility balances, rental restrictions, tenants or occupants, and written confirmation that the property will transfer free of debts and charges.
Verify Planning Legality
Your lawyer should check building licences, extensions, boundaries, access rights, Cadastral details, and the habitability or occupancy certificate where it applies.
Set Finance and Deadline Conditions
If you need a mortgage, add a written finance condition. If you are a cash buyer, confirm funds are available, traceable, transferable, and timed for bank compliance checks.
These checks belong before the arras signature, not after. A small reservation payment may buy time for due diligence. A full arras deposit is different. Do not transfer a large sum while ownership, debt, planning, or finance questions are still open.
The contract should identify the buyer and seller, the Land Registry and Cadastral references, purchase price, deposit, payment route, notary deadline, included furniture and appliances, who pays which taxes and costs, and what happens if either party cannot complete. It should also say the property is sold free of tenants, occupants, debts, and charges unless a known issue is being handled at completion. Our legal guide to buying in Spain covers the wider legal process.
How to Protect Your Deposit
Protective Clauses
Common Mistakes
The safest buyer is not the buyer who trusts nobody. It is the buyer who gets every important point written down before signing. If the seller promises to remove furniture, repair damp, clear a mortgage, pay community arrears, or include appliances, put it in the contract. If your mortgage is not final, put the finance condition in the contract. If the legal checks are unfinished, do not sign.
Your lawyer must be independent. Do not rely on the seller's lawyer, the developer's lawyer, or the estate agent to protect your deposit. Their role is different from yours. Your lawyer should review the arras, check the property, negotiate protective wording, verify the payment account, and explain the contract in plain language before you sign.
Cash buyers should also slow down. International transfers, currency exchange, anti-money-laundering checks, and Spanish bank compliance can delay funds. A 30-day deadline may be too tight if the money is coming from several accounts or currencies. Build the timeline around the real banking process, not the seller's preferred date.
Before You Sign
Speak With an Independent Property Lawyer
Have a Spanish property lawyer review the arras contract, checks, payment route, and deposit clauses before you commit.
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