Once you’ve found the perfect villa, finca, or apartment in Ibiza, the seller will usually request a deposit and arras contract. This private agreement locks in the sale — and is legally binding.
At Borderless Lawyers, we review and draft arras contracts for foreign buyers to ensure you’re protected before putting your money down.
📄 What Is an Arras Contract?
The arras contract (contrato de arras penitenciales) is a preliminary agreement where:
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Buyer pays a 10% deposit
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Seller removes the property from the market
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Both parties agree to finalize by a set date
This contract is legally enforceable in Spain and includes penalties if either party withdraws.
💸 What Happens If You Back Out?
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Buyer withdraws ➝ forfeits the 10% deposit
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Seller withdraws ➝ must return double the deposit
✅ That’s why proper legal review before signing is essential — especially for foreign buyers.
🛑 Risks Without Legal Review
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Deposit paid without confirming property legality
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Missing clauses on mortgage conditions
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Inflexible timelines that don’t allow for due diligence
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No refund protection if urban issues arise
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Buyer forced to proceed despite zoning/planning problems
🔐 Key Clauses We Include to Protect You
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Subject to due diligence and legal clearance
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Subject to mortgage approval (if needed)
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Clear timeline for notary deed signing
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Obligations of both buyer and seller
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Conditions for deposit return or penalties
✅ We tailor the contract to your exact situation.
🧾 Common Misconceptions
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“The arras is just a formality” — False. It’s binding.
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“Agents always handle this” — They’re not legal professionals.
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“I can cancel if something feels wrong later” — Not without losing your deposit.
💼 What We Do
At Borderless Lawyers, we:
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Draft or revise the arras contract
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Verify that the seller has legal title
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Include protective clauses for foreign buyers
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Ensure the deposit is handled securely
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Represent you via POA if needed
💬 Final Word
The arras contract in Ibiza can be your biggest legal risk — or your greatest protection. With proper legal advice, you can reserve your property and move forward with confidence.
📞 Contact us before signing any arras contract in Ibiza — and let us protect your deposit from day one.