If you’re a foreign buyer in Valencia, chances are you’ll be asked to sign an arras contract before finalizing the purchase.
But this contract is legally binding — and mistakes can cost you your entire deposit.
This guide explains how arras contracts work in Valencia and how to use them safely.
🧾 What Is an Arras Contract?
An arras contract (contrato de arras) is a private preliminary agreement between buyer and seller. It sets the basic terms of the sale and includes a deposit payment, typically 10% of the property price.
Under Spanish law (Article 1454 of the Civil Code), arras contracts allow either party to back out — but with penalties.
🔁 Three Types of Arras in Spain
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Confirmatory Arras (Arras Confirmatorias)
✔️ Indicates firm commitment
❌ No withdrawal allowed
❌ Legal action required to resolve disputes -
Penalty Arras (Arras Penitenciales)
✅ Most common type
✅ Allows withdrawal by forfeiting the deposit or paying double
✅ Safer for buyers and sellers -
Penal Arras (Arras Penales)
❌ Treated as compensation for breach
❌ Still enforceable in court
❌ Rarely used for property transactions
📌 In Valencia, penalty arras (arras penitenciales) are most typical — but you must confirm the type explicitly in writing.
⚖️ Legal Implications for Foreign Buyers
Here’s how penalty arras work:
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If you back out, you lose your deposit
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If the seller backs out, they owe you double the deposit
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If both agree to cancel, penalties can be waived
💡 These rules apply even if you don’t understand the language — which is why legal review is critical.
🏗️ What Should Be Included in a Valencia Arras Contract?
Your contract should clearly state:
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Names of buyer and seller
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Property description and address
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Total agreed price
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Deposit amount and payment method
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Deadline for signing the public deed
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Type of arras (confirmatory or penalty)
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Refund clauses or conditions for cancellation
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Who pays taxes and fees
📌 We provide bilingual arras contracts with custom protection clauses for foreign buyers.
❌ Common Mistakes to Avoid
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❌ Signing without understanding the legal type of arras
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❌ Paying a deposit before full due diligence
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❌ Missing deadlines in the contract
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❌ Assuming the deposit is refundable by default
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❌ Using agent-provided templates without review
✅ Our Valencia property lawyers draft or revise every contract with your rights protected.
🧑⚖️ Why Work With a Lawyer for the Arras Contract?
✔️ We confirm the seller’s legal authority
✔️ Include refund terms and penalties in your favor
✔️ Set realistic timelines based on your NIE or mortgage
✔️ Ensure deposit handling is secure and traceable
✔️ Translate and explain every clause
💡 Example: Buyer Loses Deposit Over Hidden Debts
A foreign client signed an arras without legal review.
Later, we found unpaid community fees and licensing issues — but it was too late to withdraw without penalty.
Result: €25,000 deposit lost.
💡 Legal review before signing would have prevented this entirely.
📞 Need Help With Your Arras Contract in Valencia?
Whether you’re at the reservation stage or reviewing your first draft, we ensure your deposit is safe and the terms are in your favor.