In Mallorca, the arras contract (contrato de arras) is a critical legal step when buying property. It sets the conditions of the sale and typically involves a 10% deposit. But for foreign buyers, signing the wrong arras contract can be risky — especially if legal protections are missing.
At Borderless Lawyers, we draft and review arras contracts that protect your rights and money.
📌 What Is an Arras Contract?
An arras contract is a binding pre-sale agreement where:
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Buyer and seller agree to proceed with the purchase
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Buyer pays a deposit (usually 10%)
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Penalties are established for cancellation or breach
There are different types, but the most common in Mallorca is the penitential arras (arras penitenciales).
⚖️ What Happens If One Party Backs Out?
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If you cancel, you lose the deposit
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If the seller cancels, they must return double the deposit
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If agreed conditions (mortgage approval, permits, etc.) are not met, cancellation may be penalty-free — only if the contract says so
✅ We include custom legal clauses to protect you in case of delays or surprises during due diligence.
🧾 Key Clauses We Add for Foreign Buyers
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Subject to mortgage approval
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Conditional on legal due diligence
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Remote signing and POA acceptance
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Clear timelines and penalty definitions
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Seller responsibility for community or tax debts
💡 We ensure the arras contract reflects your interests, not just the agent’s or seller’s.
🛑 Common Mistakes to Avoid
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Signing a template contract in Spanish only
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Sending deposit funds before legal review
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Not setting clear exit clauses
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Overlooking zoning or registration issues before committing
💼 What We Do
At Borderless Lawyers, we:
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Draft the arras contract in bilingual format
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Align it with due diligence results
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Handle deposit transfers securely
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Represent you if you’re abroad using Power of Attorney
💬 Final Word
The arras contract is one of the most legally sensitive moments in your Mallorca property purchase. If poorly written, it can cost you your deposit — or block you from recovering double if the seller cancels.
At Borderless Lawyers, we make sure the contract protects you.
📞 Contact us before you sign or pay any deposit on a Mallorca property.