The Contrato de Arras is a reservation or deposit contract used in Spain to formalize the buyer’s intent to purchase a property.
In Alicante, this contract is standard in real estate transactions — but it must be carefully reviewed or drafted, especially for foreign buyers.
📌 Why It Matters
-
Legally binds the seller and buyer
-
Requires a deposit (typically 10%)
-
Sets a deadline for final signing at the notary
-
Outlines penalties if either party backs out
It is not just a handshake agreement. If done incorrectly, it can lead to lost deposits or legal disputes.
⚖️ Types of Arras Contracts
There are 3 main types under Spanish law, but the most common in Alicante is the penitential arras (arras penitenciales) under Article 1454 of the Civil Code:
| Type | Description | Penalty Clause |
|---|---|---|
| Confirmatory | Deposit confirms agreement | No withdrawal allowed |
| Penalty | Deposit acts as penalty | Both parties can demand enforcement |
| ✅ Penitential | Most common in Alicante | Buyer loses deposit if they withdraw; seller must return double if they do |
At Borderless Lawyers, we draft only penitential arras with clear protections for foreign buyers.
📋 What Should Be Included in a Safe Arras Contract
We ensure the contrato de arras contains:
-
Full property description
-
Seller and buyer identities (with NIE or passport numbers)
-
Exact purchase price and deposit amount
-
Deadline for final deed signing
-
Contingency clauses, such as:
-
Urban planning/legal issues
-
Pending mortgage approval
-
Title defects
-
Inheritance or co-owner consent
-
-
Penalties for default
-
Confirmation of legal checks to be completed before signing the escritura
🚩 Common Risks in Alicante Without Legal Review
-
Buyer signs without understanding refund conditions
-
Contract favors the seller (non-refundable deposit under any condition)
-
Seller uses a template from a real estate agent that lacks legal protections
-
Property has pending debts or planning violations
-
Buyer signs before confirming title ownership or building legality
📌 These mistakes are very common in coastal and rural areas of Alicante.
👨⚖️ How We Protect Foreign Buyers
We:
-
Draft or revise the arras contract in Spanish and English (or your language)
-
Insert custom protection clauses
-
Verify legal and urban compliance BEFORE you sign
-
Handle deposit transfers via secure escrow or client account
-
Communicate with agents and sellers on your behalf
-
Set a realistic notary deadline based on legal checks
💶 How Much Deposit Should You Pay?
In Alicante, the standard is 10% of the purchase price, though this is negotiable.
We advise:
-
Never pay more than 10% without full legal review
-
Use a secure bank transfer with written confirmation
-
Avoid cash deposits or non-refundable clauses without legal advice
📆 Timeline After Signing the Arras
| Step | Timeframe |
|---|---|
| Legal Due Diligence | 1–2 weeks |
| Notary Date Confirmed | Within 30–60 days |
| Final Payment & Escritura Signing | At notary |
| Registration & Tax Filing | Within 30 days of signing |
We manage the entire process, ensuring all legal steps are met before closing.
🧑⚖️ Why Foreign Buyers Choose Borderless Lawyers in Alicante
-
Independent from real estate agents
-
Transparent, fixed-fee pricing
-
Bilingual legal support
-
Deep experience with local sellers and notaries
-
Full support for in-person or remote buyers via Power of Attorney
📞 Need a Legally Secure Arras Contract?
Don’t risk your deposit. Let us draft or review your Contrato de Arras before you sign.