An arras contract is a legally binding pre-sale agreement under Spanish law. It typically comes before signing the final deed (escritura) and involves a 10% deposit from the buyer.
📌 In Valencia (and all of Spain), the arras contract:
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Reserves the property
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Sets out price, deadlines, and conditions
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Penalizes the party that cancels the deal
It’s a powerful document — not just a “simple reservation.”
⚖️ Legal Basis: Spanish Civil Code Article 1454
Under this law:
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If the buyer withdraws, they lose their deposit.
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If the seller withdraws, they must return double the deposit.
✅ This is known as arras penitenciales — the most common type.
💡 What Should Be Included in a Valencia Arras Contract?
A solid arras contract should include:
| Clause | Purpose |
|---|---|
| Parties & ID | Names and NIE/passport numbers of buyer and seller |
| Property description | As per nota simple and catastro |
| Final price | Agreed sale price including taxes |
| Deposit amount | Usually 10% of total |
| Completion deadline | Date to sign at the notary |
| Penalty clause | Terms if either party cancels |
| Legal conditions | Conditional on due diligence, mortgage, etc. |
✅ At Borderless Lawyers, we draft or revise the contract to protect your interests.
❌ What Can Go Wrong Without Legal Review?
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Deposit paid to the seller directly without escrow
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Inaccurate property description (e.g. size, title, garage)
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No clause allowing buyer to cancel if legal issues arise
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Missing signatures or legal errors that make it unenforceable
📌 These mistakes can lead to loss of deposit, disputes, or delays.
🧾 Is the Deposit Refundable?
Only if the contract explicitly allows it.
We include suspensive conditions to protect foreign buyers, such as:
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Subject to clean title
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Subject to mortgage approval
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Subject to legal regularization of construction
✅ These clauses let you recover your deposit if something is legally wrong.
🤝 Why It’s Essential in Valencia Transactions
The arras contract:
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Locks in the deal
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Takes the property off the market
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Allows time to prepare financing and due diligence
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Sets a deadline for completion
It’s the most common pre-sale structure used by Spanish notaries and estate agents.
🧑⚖️ How Borderless Lawyers Helps
We handle the arras process end to end:
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Review all legal documents before signing
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Draft buyer-safe contracts
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Hold the deposit securely or oversee safe transfer
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Negotiate any custom clauses (inheritance, tax, POA, etc.)
✅ You’re always protected, in your language, and legally compliant.
📞 Don’t Sign an Arras Contract in Valencia Without Legal Advice
We’ve helped foreign buyers from the UK, Sweden, Germany, the US, and beyond secure their future home in Valencia — without losing deposits or facing legal surprises.