What Is a Contrato de Arras?

The Contrato de Arras is a legally binding private agreement in Spain used to:

  • Reserve the property

  • Define key terms of the purchase

  • Formalize a deposit (usually 10%)

  • Set penalties if either party withdraws

📌 In Malaga and across Spain, it’s typically signed before the notary deed — and can be enforced in court.


⚖️ What Happens If Someone Backs Out?

Under Article 1454 of the Spanish Civil Code:

  • If the buyer backs out: they lose the deposit

  • If the seller backs out: they must return double the deposit

Example:
You pay a €30,000 deposit. If the seller cancels, they owe you €60,000.

✅ With legal clauses, we can add buyer protections and specific conditions.


🧾 What Should Be Included in the Arras Contract?

A solid arras contract should include:

Clause Purpose
Buyer and seller identities Ensure correct legal names, NIE/NIF numbers
Property description As recorded in the Land Registry and Cadastre
Purchase price & deposit Typically 10% of agreed value
Payment timeline Dates for full payment and notary signing
Penalties Based on Spanish Civil Code or customized terms
Conditions precedent Subject to mortgage approval, urban compliance, etc.
Notary & tax responsibilities Who pays what
Default & dispute resolution Jurisdiction and legal remedies

✅ Borderless Lawyers drafts all arras contracts in English + Spanish and explains each clause clearly.


❌ Common Mistakes Foreign Buyers Make in Malaga

  1. Signing without due diligence
    → The property may have legal issues, debts, or urban infractions

  2. Paying deposit directly to the seller
    → Risk of fraud or loss — use an escrow or lawyer’s client account

  3. No “subject to mortgage” clause
    → If your loan is denied, you still lose the deposit

  4. Unclear signing deadline
    → Can cause delays or disputes with seller


🔐 How to Protect Your Deposit

We recommend:

  • Adding a “subject to financing” clause

  • Including a legalization condition (if the property lacks licenses)

  • Holding deposit in a lawyer-managed account

  • Linking arras expiration to municipal approvals, if needed

  • Defining dispute resolution in your country’s language and legal framework (if possible)

✅ These protections are negotiated before signing — don’t leave it to chance.


📅 When Should You Sign the Arras?

After:

  • Due diligence is complete

  • Your mortgage (if any) is pre-approved

  • The purchase structure and tax plan are clear

  • You’ve reviewed the contract with your lawyer

📌 Rushing into an arras too early is a major legal risk.


🧑‍⚖️ Why Work with a Lawyer in Malaga?

We provide:

  • Bilingual arras contract drafting and negotiation

  • Deposit structuring via escrow

  • Risk mitigation clauses

  • Coordination with estate agents, notaries, and banks

  • 100% buyer-focused legal advice


📞 Signing an Arras in Malaga? Let Us Help You Do It Right

Before you pay anything or commit to a contract, make sure your investment is protected.

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