What to check before signing a deposit agreement when buying property
An arras contract in Spain is one of the most important documents when buying property. At this stage, the buyer often takes on serious financial obligations, fixes the property price, transaction deadlines and the conditions for going to the notary. A mistake in the arras contract can lead to loss of the deposit, a dispute with the seller or the purchase of a property with legal problems.
Many foreign buyers perceive arras as a simple “reservation” or formality. In practice, this is not the case. Contrato de arras is an agreement between the buyer and seller that may have different legal consequences depending on the wording. In some cases, the buyer may withdraw and lose only the deposit. In other cases, the seller may demand completion of the transaction or compensation for damages. Therefore, it is important to understand exactly which type of arras is being signed.
In Spain, the arras contract is not a mandatory stage of buying property. The parties may go directly to signing the notarial escritura de compraventa. But in practice, arras is used very often because time is usually needed between choosing the property and the notarial transaction: for legal due diligence, obtaining an NIE, mortgage preparation, bank compliance, transferring funds, cancelling the seller’s mortgage and preparing documents.
The main conclusion: an arras contract should be signed only after preliminary legal due diligence of the property and only with conditions that protect the buyer.
Key Takeaways on the Arras Contract in Spain
Contrato de arras is a preliminary agreement between the buyer and seller of a property. It fixes the price, property, deposit amount, deadline for going to the notary, obligations of the parties and consequences of withdrawal.
The buyer usually transfers a certain amount of money to the seller as arras. Often this is around 10% of the property price, but the amount may be different and depends on the agreement between the parties. What matters is not only how much money is transferred, but also under which conditions.
The most common option in the real estate market is arras penitenciales. Under this format, the buyer may withdraw from the transaction and lose the arras amount, while the seller may withdraw by returning double the amount to the buyer. This logic is set out in Article 1454 of the Código Civil.
But there are other types of arras: confirmatorias and penales. They work differently. Therefore, a contract should not be signed only because it is called “arras”. The specific terms must be read.
The main danger for the buyer is signing arras before legal due diligence. If after signing it turns out that the property has problems, recovering the deposit may be difficult if there are no protective conditions in the contract.
What Is a Contrato de Arras?
Contrato de arras is an agreement that the parties sign before the notarial purchase of property.
It is usually used to:
fix the price;
reserve the property for the buyer;
set the deadline for going to the notary;
confirm the parties’ intention to complete the transaction;
determine the deposit amount;
define the consequences of withdrawal;
fix the seller’s obligations;
fix the buyer’s obligations;
agree on the conditions for handing over the property;
describe which documents must be provided;
protect the parties until the escritura is signed.
An arras contract may be short or detailed. For the buyer, it is better for it to be detailed. The more important conditions are written down, the lower the risk of dispute.
Conditions on legal clarity of the property, removal of encumbrances, absence of debts, seller’s mortgage, buyer’s mortgage, tenants, furniture, deadlines, taxes and expenses are especially important.
Is the Arras Contract Mandatory?
No, the arras contract is not mandatory.
The buyer and seller may go directly to the notary and sign the escritura pública de compraventa. But in practice, this is rarely possible immediately because documents must be prepared before the notary.
The buyer may need time for:
obtaining an NIE;
opening a bank account;
passing bank compliance;
transferring funds;
obtaining a mortgage;
property valuation;
legal due diligence;
checking Nota Simple;
checking Catastro;
checking comunidad;
checking IBI;
negotiating transaction terms;
preparing a power of attorney;
organising the notary.
The seller may need time for:
preparing documents;
cancelling a mortgage;
obtaining a comunidad certificate;
obtaining an IBI receipt;
vacating the property;
coordinating with other owners;
preparing inheritance documents;
moving out.
Therefore, arras is used as an intermediate agreement that fixes the transaction before the notary.
How Arras Differs from Reservation
In the Spanish market, a buyer may encounter two documents: reserva and contrato de arras.
Reserva
A reservation is usually signed at an early stage. Its goal is to temporarily remove the property from the market or show the buyer’s serious intention. The reservation amount is often smaller than the arras amount. Refund terms depend on the wording of the document.
Contrato de arras
Arras is a more serious agreement. It usually fixes the main terms of the future purchase, the price, notary deadline and consequences of withdrawal. The arras amount is often higher than the reservation amount.
The buyer’s mistake is thinking that a reservation is always safe and easily refundable. This is not always true. Even a small reserva document may contain conditions for losing money. Therefore, any document involving payment must be read before signing.
What Types of Arras Exist?
In Spain, three types of arras are usually distinguished:
arras confirmatorias;
arras penales;
arras penitenciales.
Each type has different consequences.
Arras confirmatorias
This is confirmation of an already concluded agreement and part of the price. They show that the parties have already agreed to the transaction. If the contract is breached, the injured party may demand completion of the transaction or compensation for damages.
Arras penales
This is a deposit with a penalty function. It establishes sanctions for breach of contract. At the same time, depending on the wording, the possibility of demanding completion of the transaction may remain.
Arras penitenciales
These are arras with the right of withdrawal. The buyer may withdraw by losing the deposit. The seller may withdraw by returning double the amount. This type is regulated by Article 1454 of the Código Civil.
For the buyer, it is essential to understand which type of arras they are signing. The consequences may be completely different.
Arras Penitenciales
Arras penitenciales are the most common option when buying property in Spain.
The logic is simple: the parties have the right to withdraw from the transaction, but with financial consequences.
If the buyer withdraws, they lose the arras amount.
If the seller withdraws, they return double the arras amount to the buyer.
For example:
property price — €300,000;
arras — €30,000;
if the buyer withdraws without a protected reason, they lose €30,000;
if the seller withdraws, they must return €60,000.
This mechanism works only if the contract clearly states that the parties have agreed specifically on arras penitenciales and the right of desistimiento.
If the wording is unclear, disputes may arise over which consequences apply.
Arras Confirmatorias
Arras confirmatorias are not a “penalty for withdrawal”, but confirmation of an already concluded agreement.
They are part of the price and confirm the obligation to buy and sell.
If one party breaches the contract, the other party may demand:
completion of the contract;
termination of the contract;
compensation for damages;
other consequences depending on the situation.
For the buyer, arras confirmatorias may be riskier if they think they can simply withdraw and lose only the deposit. This may be wrong.
If the buyer signs arras confirmatorias and then does not complete the transaction, the seller may not be limited to keeping the deposit and may demand completion or compensation for damages.
Therefore, a foreign buyer needs to check the contract wording especially carefully.
Arras Penales
Arras penales have a penalty function. They establish a sanction for breach of contract.
For example, the contract may state that if the buyer breaches it, the seller keeps the arras amount as a penalty. But depending on the wording, this does not always exclude a demand for completion of the transaction or additional damages.
Arras penales may be used in more complex transactions, but for an ordinary foreign buyer it is important to understand: this is not the same as arras penitenciales.
If the buyer wants the right to withdraw by losing only a defined amount, the contract must be drafted clearly and expressly.
Why the Type of Arras Must Be Stated Clearly
The title of the contract does not always resolve the issue. The content matters.
A document may be called “contrato de arras”, but inside contain confirmatorias, penales or penitenciales terms. Spanish case law assesses the wording and the real intention of the parties.
Therefore, the contract must clearly state:
which type of arras is used;
whether the parties have the right to withdraw;
what the consequences of withdrawal are;
whether the buyer loses only the arras amount;
whether the seller returns double the amount;
whether completion of the transaction can be demanded;
whether additional damages can be claimed;
which exceptions protect the buyer.
The clearer the contract, the lower the risk of dispute.
What Amount of Arras Is Usually Used?
In practice, an amount of around 10% of the property price is often used. But this is not a legal rule, only market practice.
The amount may be:
€3,000;
€5,000;
1% of the price;
5% of the price;
10% of the price;
another amount agreed by the parties.
The amount depends on the property price, region, negotiating position, transaction timing, competition, seller requirements and document preparation stage.
For the buyer, it is important to understand: the higher the arras amount, the higher the risk of losing money if they withdraw. Therefore, before transferring a large amount, legal due diligence should be carried out or protective conditions should be included in the contract.
Who Receives the Arras Money?
Arras money may be transferred to:
the seller;
the agency;
the lawyer;
a special client account;
a third-party account;
by bank transfer;
by bank cheque;
another agreed method.
For the buyer, it is important to understand:
who receives the money;
on what basis;
what happens in case of withdrawal;
whether there is an escrow or client account;
whether the money is returned in case of legal problems;
how payment is recorded;
which bank details are used;
whether the recipient matches the seller;
whether receipt is confirmed.
It is dangerous to transfer a large amount to the personal account of an unclear person without a contract, proof of authority and refund conditions.
What Should Be in an Arras Contract?
A good contrato de arras should contain detailed transaction terms.
The contract should state:
buyer details;
seller details;
if there are several sellers — all owners;
if there is a representative — power of attorney;
property description;
address;
finca registral;
CRU or IDUFIR;
referencia catastral;
parking and storage room;
furniture and equipment;
price;
arras amount;
type of arras;
deadline for going to the notary;
payment terms;
tax regime;
allocation of expenses;
property condition;
presence or absence of tenants;
existence of the seller’s mortgage;
obligation to remove encumbrances;
absence of comunidad debts;
absence of IBI debts;
key handover;
buyer’s mortgage conditions;
legal due diligence conditions;
consequences of withdrawal;
choice of notary;
language and translations, if needed;
applicable law and jurisdiction.
The more detailed the contract, the better protected the buyer is.
Seller Check Before Arras
Before signing arras, it is necessary to make sure that the seller can actually sell the property.
It is necessary to check:
Nota Simple;
owner;
whether the seller matches the owner;
whether there are several owners;
what share each owner holds;
whether there is a spouse whose consent is needed;
whether there is a power of attorney;
whether the power of attorney is valid;
whether there are inheritance issues;
whether the property is sold by a company;
whether the director has authority;
whether there are court restrictions.
If the property belongs to several owners, the arras contract must be signed by all owners or their representatives. The signature of one seller may be insufficient.
Property Check Before Arras
Before signing arras, at least basic legal due diligence of the property must be carried out.
At minimum, it is necessary to check:
Nota Simple;
Registro de la Propiedad;
Catastro;
IBI;
comunidad;
debts;
mortgage;
seizures;
encumbrances;
area;
parking;
storage room;
tenants;
rental possibility;
urbanismo for a villa or house;
licences for a new-build;
property condition;
tax regime.
If the buyer signs arras before the check, the contract must include a condition that the deposit is returned if serious legal problems are discovered.
Arras and Nota Simple
Nota Simple must be checked before arras.
It helps identify:
owner;
property description;
finca registral;
mortgage;
seizures;
easements;
usufructo;
disposal prohibitions;
other registered charges.
If the Nota Simple shows the seller’s mortgage, this is not necessarily a problem. But the arras must state that the mortgage will be repaid and cancelled by the notarial transaction.
If there is an embargo or other serious encumbrance, it is necessary to understand whether it can be removed and how this will be done.
If there is usufructo, the buyer must understand whether they will actually be able to use the property after purchase.
Arras and Catastro
It is advisable to state the referencia catastral in the arras contract and compare it with Catastro.
This is important for:
property identification;
tax base;
IBI;
area;
cadastral value;
reference value;
consistency of the property with documents.
If Registro and Catastro data differ, this must be analysed before signing the contract or a review condition should be included.
The discrepancy itself does not always make the transaction impossible, but the buyer must understand the consequences.
Arras and the Seller’s Mortgage
If there is a seller’s mortgage on the property, the arras contract must clearly describe the mechanism for cancelling it.
It is necessary to state:
that the property is transferred free of encumbrances;
which bank holds the mortgage;
the seller must provide a debt certificate;
part of the price may be paid to the seller’s bank;
the mortgage must be repaid on the notary day;
mortgage cancellation costs are borne by the seller unless the parties agree otherwise;
registry cancellation must be organised.
The buyer should not accept vague wording such as “the mortgage will be resolved”. The mechanism must be clear.
Arras and the Buyer’s Mortgage
If the buyer is taking a mortgage, this must be stated in the arras contract.
A mortgage condition may protect the buyer if the bank refuses financing.
The contract may state that the arras are returned to the buyer if:
the bank refuses the mortgage;
the property valuation is below a certain level;
the bank approves an amount lower than required;
the property is unsuitable for financing;
it is impossible to obtain financing for reasons beyond the buyer’s control.
But the seller does not always agree to such a condition. Therefore, it must be discussed before signing.
If there is no mortgage condition, the buyer may lose the arras if the bank refuses.
Arras and the Notary Deadline
The contract must clearly state the deadline for signing the notarial escritura.
Usually, the parties set a date or final deadline: for example, within 30, 60 or 90 days.
The deadline must be realistic.
For a foreign buyer, it is necessary to consider time for:
NIE;
bank;
compliance;
international transfers;
mortgage;
valuation;
document translations;
power of attorney;
legal due diligence;
notary coordination.
If the deadline is too short, the buyer risks not having time to prepare the transaction and losing the arras.
Arras and NIE
To buy property in Spain, a foreigner usually needs an NIE.
If the buyer does not yet have an NIE, this must be considered in the arras timeline.
The contract may provide a sufficient period before the notary to obtain an NIE. If the buyer acts through a lawyer, the power of attorney may include authority to obtain the NIE.
A mistake is signing arras with a short notary deadline without having an NIE, Spanish bank account, prepared bank and ready documents.
Arras and Bank Compliance
For a foreign buyer, not only the contract matters, but also the ability to transfer money.
A Spanish bank may request:
passport;
NIE;
income documents;
tax returns;
bank statements;
proof of origin of funds;
documents on sale of property;
business documents;
dividend documents;
inheritance documents;
company structure if buying through a legal entity.
If the bank does not accept the funds or delays compliance, the buyer may not have time to go to the notary.
Therefore, before signing arras, it is necessary to understand how payments will be made.
Arras and Legal Due Diligence
It is best to carry out legal due diligence before arras. But if the market is fast and the seller requires signing, protective conditions must be included in the contract.
For example, it may be stated that the arras are returned to the buyer if the check reveals:
owner mismatch;
mortgage that cannot be cancelled;
seizure;
serious encumbrances;
comunidad debts;
IBI debts;
illegal extensions;
impossibility of registration;
impossibility of obtaining a licence, if this is a condition of the transaction;
tenants that were not disclosed;
tourist rental prohibition, if the purchase depends on this model;
urbanismo problems;
substantial area discrepancies;
bank refusal due to the property’s legal status.
Such conditions must be written clearly. A general phrase “subject to due diligence” may be insufficient if the consequences are not specified.
Arras and Tenants
If the property is sold with tenants, this must be reflected in the arras.
It is necessary to state:
whether there is a rental contract;
who the tenant is;
contract term;
rental amount;
deposit;
debts;
when the property will be free;
who is responsible for eviction or contract termination;
whether the property is transferred with the tenant;
whether the buyer has the right to withdraw if the rental terms are unsuitable.
The buyer should not find out after arras that the property is occupied by a tenant with a long-term contract.
If the buyer’s goal is to live in the property or renovate it, tenants may become a serious problem.
Arras and Tourist Rental
If the buyer purchases the property for tourist rental, this must be considered in the arras.
It is necessary to check:
whether there is a tourist licence;
whether it can be transferred;
whether a new licence can be obtained;
whether municipal restrictions exist;
whether comunidad prohibition exists;
whether a registration number is required;
whether the property meets the requirements;
whether it can be advertised on platforms.
If the purchase depends on tourist rental, the arras must include a condition on checking the legal possibility of such rental.
Otherwise, the buyer may purchase a property that cannot be used according to the investment model.
Arras and Furniture
Furniture and equipment must be described in writing.
An inventario — a list of furniture and appliances — can be attached to the contract.
It is necessary to state:
what is included in the price;
what the seller takes;
what remains;
furniture condition;
appliances;
air conditioners;
lighting;
curtains;
terrace furniture;
kitchen equipment;
handover date;
liability for damage.
If furniture is important for rental or relocation, verbal promises are not enough.
Arras and Property Condition
The contract should preferably state the condition in which the property is handed over.
For example:
free of tenants;
free of the seller’s belongings;
without debts;
with all utilities;
with functioning equipment;
with the specified furniture;
without new damage;
in the condition in which the buyer viewed it.
Before the notary, it is advisable to inspect the property again and take meter readings.
If the property was damaged between arras and notary, it is necessary to understand who bears the risk and how it is resolved.
Arras and Taxes
The arras contract must take the tax regime of the transaction into account.
It is necessary to understand:
whether it is resale or new-build;
whether ITP or IVA applies;
whether AJD applies;
what the rate is in the region;
who pays municipal plusvalía;
whether 3% withholding applies when buying from a non-resident;
how IBI is allocated for the transaction year;
which expenses are paid by the buyer;
which expenses are paid by the seller;
whether there is an agency commission;
whether the commission is subject to IVA.
Tax mistakes may change the budget by thousands of euros.
Arras and Buying from a Non-Resident
If the seller is a tax non-resident of Spain, in certain cases the buyer must withhold 3% of the sale price and pay this amount to the tax office as an advance payment against the seller’s capital gains tax.
This must be considered in the arras and in the notarial transaction.
The contract should preferably state:
seller’s tax status;
whether the 3% withholding applies;
how this amount will be withheld;
who files the tax forms;
how this is reflected in the price and payments.
If the buyer does not fulfil the withholding obligation, they may have problems with the tax authorities.
Arras and Transaction Costs
The contract must state the allocation of expenses.
Usually, it is necessary to determine:
who pays the notary;
who pays registration;
who pays ITP, IVA or AJD;
who pays municipal plusvalía;
who pays cancellation of the seller’s mortgage;
who pays the agency commission;
who pays gestor;
who pays bank cheques;
who pays transfers;
who pays certificates;
how IBI is allocated;
who pays comunidad debts.
The allocation of expenses must be clear before signing so that no dispute arises before the notary.
Can Arras Be Refunded?
Yes, if this is provided by the contract or if there is a legal basis.
With arras penitenciales, the buyer usually loses the arras if they simply withdraw from the purchase without a protected reason.
But arras may be refunded if the contract provides for refund under certain conditions:
bank refusal under a mortgage condition;
negative legal due diligence;
undisclosed encumbrances;
impossibility of cancelling the seller’s mortgage;
debts not resolved by the seller;
seizure or disposal prohibition;
impossibility of transferring the property free of occupants;
substantial area discrepancy;
impossibility of obtaining a licence, if this is a condition;
seller’s breach of obligations.
The main point is that refund conditions must be written clearly.
What Happens If the Buyer Withdraws?
The consequences depend on the type of arras.
With arras penitenciales, the buyer usually loses the arras amount.
With arras confirmatorias, the seller may demand completion of the contract or compensation for damages.
With arras penales, the penalty logic established in the contract applies, and additional claims may be possible depending on the wording.
Therefore, the buyer must understand the consequences before signing.
It should not be assumed that in any contrato de arras the maximum risk is losing the deposit. This is not always true.
What Happens If the Seller Withdraws?
With arras penitenciales, the seller must return double the arras amount to the buyer.
For example, if the buyer paid €20,000, the seller must return €40,000 if they withdraw.
But in practice, recovering the double amount may require negotiations or court proceedings if the seller does not comply voluntarily.
Therefore, it is important to assess the reliability of the seller, payment method and contract wording.
If the seller withdraws under other types of arras, the consequences depend on the contract terms and applicable law.
What to Do If the Bank Refuses the Mortgage
If the arras contain a mortgage condition, the buyer may have the right to recover the deposit if the bank refuses.
If there is no such condition, the buyer may lose the arras.
Therefore, buyers using a mortgage should:
obtain preliminary bank analysis before arras;
avoid overstretching the budget;
consider property valuation;
prepare documents;
prove origin of funds;
include a mortgage condition;
provide sufficient time before the notary;
check that the property is suitable for the bank.
The bank may refuse not only because of the buyer, but also because of the property. For example, if there are illegal extensions, Registro issues, urbanismo problems or a low valuation.
What to Do If a Problem Is Found After Arras
Everything depends on the problem and the contract wording.
If the problem was provided as a basis for refunding the arras, the buyer may demand the refund.
If the problem is serious and the seller breached their declarations, correction, modification of terms or termination may be requested.
If the contract does not protect the buyer, the negotiating position is more difficult.
Therefore, before signing arras, the buyer should either check the property or include a due diligence condition.
Examples of problems:
mortgage higher than expected;
seizure;
comunidad debts;
tenants;
tourist rental prohibition;
illegal extension;
area discrepancy;
absence of licence;
impossibility of obtaining a mortgage;
seller cannot sign;
property is not free for handover.
Can Arras Be Signed Remotely?
Yes, the arras contract can be signed remotely.
For this, the parties may use:
electronic signature;
signing scanned copies;
signing through a representative;
notarised power of attorney;
buyer’s lawyer;
another agreed format.
But remote signing requires caution.
It is necessary to check:
seller’s identity;
signatory’s authority;
payment details;
authenticity of documents;
refund conditions;
legal due diligence;
signature confirmation method;
deadlines and applicable law.
For a foreign buyer in a remote transaction, it is better to act through an independent lawyer.
Does Arras Need to Be Signed Before a Notary?
Usually, contrato de arras is signed as a private agreement without a notary.
But the parties may sign it before a notary if they want to strengthen the evidentiary basis, confirm the parties’ identities or formalise the document more strongly.
Notarial signing of arras may be useful in complex transactions, but it does not replace legal due diligence of the property.
It is important to remember: even a private contrato de arras is a valid contract and creates obligations for the parties.
Who Prepares the Arras Contract?
The arras contract may be prepared by:
buyer’s lawyer;
seller’s lawyer;
agency;
notary;
the parties themselves.
For the buyer, it is safer for the contract to be checked or prepared by the buyer’s independent lawyer.
If the contract is prepared by the seller or agency, it may not protect both parties equally. The buyer must make sure that it includes conditions on property due diligence, mortgage, debts, encumbrances, deadlines, taxes and refund of arras in case of serious problems.
What Language Should the Contract Be In?
In Spain, the contract is usually drafted in Spanish or in the language of the autonomous community, if applicable.
For a foreign buyer, a bilingual version or translation may be prepared, but it is necessary to state which version has legal force.
If the buyer does not understand Spanish, they must obtain a translation before signing. Signing a document the buyer does not understand is dangerous.
It is especially important to check legal terms: arras penitenciales, arras confirmatorias, arras penales, desistimiento, incumplimiento, resolución, penalización, cargas, gravámenes, libre de arrendatarios, libre de ocupantes.
Arras When Buying a New-Build Property
When buying a new-build from a developer, a reservation, contrato privado de compraventa or another agreement may be used instead of a classic contrato de arras.
But the risk logic is similar: the buyer pays money before the notarial transaction.
It is necessary to check:
developer;
right to the land;
building licence;
bank guarantees;
payment schedule;
IVA;
AJD;
completion date;
penalties for delay;
refund conditions;
what is included in the price;
parking and storage room;
finishing quality;
first occupancy licence;
post-completion guarantees.
When buying off-plan, it is especially important that the buyer’s payments are protected by bank guarantees.
Arras When Buying a Villa
When buying a villa, arras requires additional conditions.
It is necessary to check:
plot;
boundaries;
Catastro;
Registro;
urbanismo;
licences;
swimming pool;
garage;
extensions;
guest house;
terraces;
septic tank;
well;
road access;
easements;
condition of utilities;
legality of buildings.
If urbanismo due diligence has not been completed before arras, the contract must allow the buyer to withdraw and recover the deposit if serious violations are found.
Villas more often have hidden legal risks than apartments.
Arras When Buying a Property for Rental
If the buyer purchases a property for rental, arras must take the investment goal into account.
It is necessary to check:
whether the property can be rented out;
whether there are existing tenants;
which type of rental is possible;
whether tourist rental is available;
whether there is a licence;
whether a licence can be obtained;
whether there is a comunidad prohibition;
which municipal restrictions exist;
whether there is a registration number;
whether the property meets requirements;
which taxes apply to rental.
If rental is a key condition of the purchase, this must be fixed in the contract. Otherwise, the buyer may lose the arras or buy a property that does not work as an investment.
Main Buyer Mistakes
The most common mistake is signing arras without a lawyer.
The second mistake is not understanding which type of arras is being signed.
The third mistake is thinking that any arras can simply be lost to leave the transaction.
The fourth mistake is signing arras before checking Nota Simple.
The fifth mistake is not including a mortgage condition.
The sixth mistake is agreeing on too short a deadline before the notary.
The seventh mistake is transferring money to an unchecked account.
The eighth mistake is not describing furniture, parking and storage room.
The ninth mistake is not checking tenants.
The tenth mistake is buying for tourist rental without checking the licence and comunidad.
The main principle: contrato de arras is not a reservation, but a legally significant agreement.
What to Check Before Signing Arras
Before signing, it is necessary to check:
Nota Simple;
owner;
finca registral;
CRU or IDUFIR;
referencia catastral;
Catastro;
IBI;
comunidad;
debts;
seller’s mortgage;
seizures;
encumbrances;
easements;
usufructo;
tenants;
urbanismo;
rental possibility;
tourist licence;
parking;
storage room;
furniture;
technical condition;
tax regime;
transaction costs;
notary deadline;
buyer’s mortgage conditions;
arras refund conditions;
payment details;
signatory’s authority;
contract translation.
If at least part of the check is not complete, the contract must contain protective conditions.
How to Safely Sign a Contrato de Arras
A safe sequence looks like this.
First, the buyer chooses a property.
Then Nota Simple is requested.
The lawyer checks the owner and encumbrances.
Catastro, IBI, comunidad and basic documents are checked.
The price is agreed.
Mortgage possibility is checked if a mortgage is needed.
The arras contract is prepared.
Protective conditions are included in the contract.
The buyer checks the payment details.
The contract is signed by all necessary parties.
The buyer pays arras using a method that can be confirmed.
Then final legal preparation for the notary is carried out.
Before the notary, Nota Simple is updated.
The escritura is signed.
Taxes are paid.
Ownership is registered in the buyer’s name.
FAQ
What is a contrato de arras in Spain?
Contrato de arras is a preliminary agreement between the buyer and seller of property that fixes the price, transaction deadline, deposit amount and consequences of withdrawal.
Is an arras contract mandatory?
No, it is not mandatory. But in practice, it is used often because the parties need time before the notarial transaction.
How much is arras usually?
Often around 10% of the property price, but the amount is not set by law and depends on the agreement between the parties.
What are arras penitenciales?
These are arras with the right of withdrawal. If the buyer withdraws, they lose the deposit. If the seller withdraws, they return double the amount. This mechanism is provided by Article 1454 of the Código Civil.
Can arras be refunded if the bank refuses the mortgage?
Yes, if the contract includes a mortgage condition. If it does not, the buyer may lose the deposit.
Can arras be signed before legal due diligence?
It is better not to sign before due diligence. If this is necessary because of market conditions, the contract must include refund conditions in case of negative legal due diligence.
Who should prepare the arras contract?
It is better for the contract to be prepared or checked by the buyer’s independent lawyer. A contract from the seller or agency may not protect the buyer’s interests.
What must be stated in arras?
The parties’ details, property, finca registral, cadastral reference, price, deposit amount, type of arras, notary deadline, expenses, mortgage, debts, encumbrances, tenants, furniture and refund conditions.
What happens if the seller withdraws from the transaction?
With arras penitenciales, the seller must return double the arras amount to the buyer. With other types, the consequences depend on the contract.
What is the main buyer mistake?
The main mistake is signing a contrato de arras and transferring the deposit without checking the property, seller, encumbrances, debts, mortgage conditions and legal consequences.
Rusol Prime — Expert in Safe Property Purchase in Spain
Rusol Prime helps foreign buyers safely complete the contrato de arras stage in Spain: check the property, owner, Nota Simple, Catastro, debts, mortgage, encumbrances, tenants, urbanismo, tax regime and contract terms.
We analyse not only the price and deposit amount, but also the type of arras, refund conditions, mortgage condition, notary deadlines, payments, seller documents, rental possibility, legal risks and transaction strategy.
Get a personal consultation with Rusol Prime — we will check the arras contract before signing, identify risks and help you safely buy property in Spain for living, holidays, rental income, investment or capital preservation.
