The Contrato de Arras is one of the most important legal steps in the property buying process in Valencia. For foreign buyers, understanding how it works — and what to include — is essential to avoid losing your deposit or facing unexpected delays.
At Borderless Lawyers, we review, negotiate, and draft arras contracts tailored to protect your rights throughout your Valencia property purchase.
❓ What Is the Contrato de Arras?
The Contrato de Arras is a legally binding deposit agreement signed between the buyer and seller after agreeing on the price and terms of a property.
-
Typically involves a 10% deposit
-
Commits both parties to complete the sale
-
Sets a deadline for the notary appointment
-
Includes penalties if either party pulls out
🧑⚖️ It is enforceable under Spanish Civil Code Article 1454.
📍 Is It Mandatory?
No — but it is standard practice in Valencia. Most sellers won’t remove a property from the market without it.
Unlike a reservation contract (which is usually drafted by agents and not legally binding), the arras contract has legal force.
⚠️ Why Foreign Buyers Must Be Cautious
Many foreign buyers:
-
Sign arras contracts prepared by agents
-
Don’t understand the fine print
-
Lose deposits when delays or issues arise
-
Fail to include exit clauses for due diligence or financing
💡 Solution: Always have an independent lawyer review or draft the arras contract before signing anything.
🔒 Key Protections to Include
At Borderless Lawyers, we ensure your arras contract in Valencia includes:
| Clause | Why It Matters |
|---|---|
| Legal ownership condition | Allows exit if seller isn’t rightful owner |
| Due diligence clause | Deposit refundable if serious legal issues arise |
| Mortgage clause (if needed) | Protects buyer if financing is denied |
| Penalty for seller withdrawal | Buyer receives double deposit back |
| Clear completion deadline | Avoids open-ended delays at the notary |
| Definition of property features | Avoids surprises (e.g. square meters, fixtures) |
💸 What Happens If the Deal Falls Through?
-
If you (the buyer) back out: you lose the 10% deposit
-
If the seller backs out: they owe you double the deposit
-
If a legal problem blocks the deal: depends on contract wording
📌 We draft the clauses so you’re not penalized for issues outside your control.
📅 When Is It Signed?
-
After your offer is accepted
-
Once your lawyer begins due diligence
-
Usually 2–3 weeks before the final notary signing
It gives both sides time to prepare and finalize documents before the official signing.
💶 Typical Deposit in Valencia
| Property Price | Arras Deposit (10%) |
|---|---|
| €150,000 | €15,000 |
| €250,000 | €25,000 |
| €400,000 | €40,000 |
We can negotiate smaller deposits in complex transactions or where needed.
🧾 Can You Sign the Arras Remotely?
Yes — most foreign buyers use Power of Attorney (POA) so we can sign the arras contract on their behalf.
We:
-
Draft or review the contract
-
Explain it in plain language
-
Sign it with POA
-
Hold the deposit securely or via escrow
💬 Final Word
The Contrato de Arras is a critical part of your Valencia property purchase. Done right, it protects you. Done wrong, it can cost you thousands.
At Borderless Lawyers, we ensure every arras contract:
-
Includes buyer protections
-
Matches the legal status of the property
-
Can be signed remotely
-
Is part of a full-service property legal package
📞 Contact us today before you sign any arras agreement in Valencia — we’ll ensure your investment is safe.