If you’re buying property in Valencia, you’ll be asked to sign a contrato de arras — a private deposit agreement that reserves the property and sets the rules for completing the sale. But for foreign buyers, this contract can also carry major financial risk if not handled properly.
At Borderless Lawyers, we draft, review, and negotiate arras contracts to fully protect your rights and investment.
🔐 What Is a Contrato de Arras?
A contrato de arras is:
-
A private agreement between buyer and seller
-
Signed before the notary deed (escritura pública)
-
Includes a deposit (usually 10% of the price)
-
Sets deadlines, conditions, and penalties if the sale fails
✅ It legally commits both parties to proceed — or face financial consequences.
⚠️ Why It’s Crucial for Foreign Buyers
Many buyers:
-
Sign boilerplate arras contracts from agents
-
Pay large deposits without legal checks
-
Accept unfair penalty clauses
💡 Once signed, these contracts are binding under Spanish law. If you back out, you lose your deposit. If the seller backs out, they owe you double the deposit.
📄 What Should Be Included in the Arras Contract?
We ensure the contract includes:
-
Full buyer and seller identification
-
Description and legal status of the property
-
Price and payment structure
-
Deposit amount and refund terms
-
Conditions precedent (e.g. clean due diligence, mortgage approval)
-
Penalty clauses for non-compliance
-
Signing deadline for the notary deed
✅ We customize each clause to protect your position.
⏳ When Do You Sign the Arras?
Typically, the arras contract is signed:
-
After successful due diligence
-
Once both sides agree to final terms
-
Before you book the notary and transfer full payment
Never sign under pressure — especially not before your lawyer has reviewed the title and legal situation.
📌 Types of Arras Contracts in Spain
There are 3 main types:
-
Penitential (arras penitenciales) – most common, allows withdrawal with penalties
-
Confirmatory – acts as advance payment, no withdrawal
-
Penal – includes punitive damages on breach
We use penitential arras for most foreign buyer cases, as they offer a balanced way to secure the deal while still allowing exit under known costs.
💬 Final Word
The contrato de arras in Valencia is a powerful legal tool — but only when drafted and reviewed by a lawyer. Don’t risk your deposit on a template contract.
At Borderless Lawyers, we make sure your arras contract protects your money, your conditions, and your legal peace of mind.
📞 Contact us before signing — we’ll review or prepare your arras contract so you can proceed with confidence.