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.
âť“ 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.
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Typically involves a 10% deposit
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Commits both parties to complete the sale
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Sets a deadline for the notary appointment
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Includes penalties if either party pulls out
🧑‍⚖️ It is enforceable under Spanish Civil Code Article 1454.
đź“Ť 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:
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Sign arras contracts prepared by agents
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Don’t understand the fine print
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Lose deposits when delays or issues arise
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Fail to include exit clauses for due diligence or financing
đź’ˇ Solution: Always have an independent lawyer review or draft the arras contract before signing anything.
đź”’ 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) |
đź’¸ What Happens If the Deal Falls Through?
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If you (the buyer) back out: you lose the 10% deposit
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If the seller backs out: they owe you double the deposit
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If a legal problem blocks the deal: depends on contract wording
đź“Ś We draft the clauses so you’re not penalized for issues outside your control.
đź“… When Is It Signed?
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After your offer is accepted
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Once your lawyer begins due diligence
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Usually 2–3 weeks before the final notary signing
It gives both sides time to prepare and finalize documents before the official signing.
đź’¶ 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:
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Draft or review the contract
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Explain it in plain language
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Sign it with POA
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Hold the deposit securely or via escrow
đź’¬ 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:
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Includes buyer protections
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Matches the legal status of the property
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Can be signed remotely
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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.