The Contrato de Arras is a critical legal step in any property transaction in Spain. This reservation contract protects both the buyer and seller during the period before final signing at the notary.
In this guide, you’ll learn:
✅ What a Contrato de Arras is
✅ The 3 legal types of arras
✅ How it protects your deposit
✅ What happens if either party backs out
📘 What Is a Contrato de Arras?
The Contrato de Arras is a private agreement between the buyer and seller. It:
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Reserves the property for the buyer
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Sets the purchase price and key terms
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Includes a deposit, usually 10%
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Defines the consequences if either party fails to proceed
📌 It is not the final purchase deed, but a legally binding pre-contract.
🧾 Why the Arras Contract Is Crucial
The arras contract is often signed before due diligence is complete. That makes proper legal review critical.
A lawyer will:
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Ensure favorable deposit clauses
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Add contingencies (e.g. mortgage approval, legal checks)
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Align it with the final Escritura Pública (deed)
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Avoid risks like non-refundable deposits
⚖️ Types of Arras in Spain
Under Spanish law, there are 3 types of arras. Most contracts use Penitential Arras (Arras Penitenciales) — but it’s essential to be sure.
1. 🤝 Confirmatory Arras (Arras Confirmatorias)
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Deposit confirms the intention to buy
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If either party pulls out, specific performance (forced sale or court order) is allowed
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Not ideal for foreign buyers
2. 💔 Penitential Arras (Arras Penitenciales) – Most Common
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Deposit is lost if the buyer pulls out
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Seller must refund double the deposit if they cancel
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Clean exit for either party, no court dispute
📌 This form is most buyer-friendly, provided clauses are fair.
3. 🏛️ Penal Arras (Arras Penales)
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Acts like a penalty clause
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Court may award damages beyond the deposit
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Rare and usually avoided in residential sales
💶 How Much Is the Arras Deposit?
Typical deposit amounts:
| Property Value | Typical Deposit (10%) |
|---|---|
| €150,000 | €15,000 |
| €300,000 | €30,000 |
| €500,000+ | Negotiable – may be split into phases |
💡 A lawyer can negotiate a lower or phased deposit, especially for off-plan or risky properties.
📋 Key Clauses to Include in Your Arras Contract
A real estate lawyer in Spain will ensure your contract includes:
✅ Buyer Protections
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Deposit refunded if due diligence fails
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Exit clause if mortgage not approved
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Rights to walk away if legal issues are found
✅ Clear Timelines
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Specific deadline for notary signature
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Penalty if seller delays without cause
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Agreement on extension process if needed
✅ Identity & Description of Property
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Full legal name of seller and buyer
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Cadastral reference & property registry info
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Fixtures, furniture, or extras included
✅ Legal Jurisdiction & Language
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Spanish version always governs
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Lawyer can provide a sworn English translation
⚠️ Risks of Signing Without Legal Review
Many buyers rely on the estate agent’s template — but this can be dangerous:
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Deposit becomes non-refundable, even if legal defects exist
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No clause for cancelling due to mortgage rejection
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Seller may delay signing and claim your deposit
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Agreement may default to confirmatory (not penitential) form
📌 Always have a lawyer draft or review the arras contract before signing.
🧑💼 Who Prepares the Contrato de Arras?
| Party | Role |
|---|---|
| Estate Agent | Often provides a basic draft (not legally neutral) |
| Buyer’s Lawyer | Reviews or redrafts contract to protect the buyer |
| Seller’s Lawyer | May negotiate key terms for the seller |
Only your independent lawyer represents your interest.
🏡 Does Arras Apply to Off-Plan Property?
Yes — but use caution.
In off-plan purchases:
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Deposit goes directly to the developer
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Spanish law requires a bank guarantee for your deposit
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Check license, developer reputation, and refund conditions
📌 Arras contracts in these cases are often more complex and should be negotiated by a lawyer.
🌍 Signing the Arras Remotely (From Abroad)
Buyers can sign the arras contract remotely using:
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Power of Attorney
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Qualified electronic signature
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Courier delivery of signed copies
At Borderless Lawyers, we help buyers worldwide secure properties in Spain before visiting the country.
🏢 Work With Experts in Spanish Reservation Contracts
At Borderless Lawyers, we help you:
✅ Secure favorable deposit terms
✅ Protect your funds in the contract
✅ Negotiate penalties, timelines, and conditions
✅ Sign remotely from your home country
✅ Translate and explain every legal term
We assist clients buying in:
📍 Barcelona, Málaga, Madrid, Valencia, Alicante, Marbella
📞 Book a Free Consultation Before You Sign Anything
Before you commit your deposit, make sure the Contrato de Arras protects your rights. We’ll review or draft your reservation contract to keep you safe.