In Malaga and across Spain, an arras contract (contrato de arras) is a deposit agreement signed before the final property deed.
It sets:
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The price and conditions of the sale
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A reservation period
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What happens if either party pulls out
⚠️ It’s legally binding — not just a “preliminary” agreement.
✍️ Types of Arras Contracts in Spain
There are 3 types of arras, but only one is most common:
1. ✅ Confirmatory Arras (Arras Confirmatorias)
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Standard contract enforcing the sale
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If a party backs out, the other can sue for completion or damages
2. 🔁 Penitential Arras (Arras Penitenciales) – Most Common
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Based on Spanish Civil Code Art. 1454
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If the buyer backs out, they lose the deposit
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If the seller backs out, they must return double the deposit
📌 This is the version used in 95%+ of property deals in Malaga.
3. 💰 Penalty Arras (Arras Penales)
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Rare — includes additional penalties on top of deposit loss
🧠 Why It Matters for Foreign Buyers
Foreign buyers often think the arras contract is “just a formality.”
But it’s the most dangerous point in the entire process if handled incorrectly.
Common Risks:
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Losing your deposit due to unclear conditions
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Being forced to buy a property with unresolved legal issues
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Signing before proper due diligence is complete
✅ When to Sign the Arras Contract
Only sign when:
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Legal due diligence is complete
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You’ve received and reviewed the nota simple, tax status, and planning permits
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Your lawyer approves the terms and translation
📌 At Borderless Lawyers, we never recommend signing arras before reviewing all documents.
📑 What Should Be Included in Your Arras Contract?
A proper arras contract should specify:
| Clause | Why It Matters |
|---|---|
| Full identification of buyer/seller | Avoid identity errors or fraud |
| Property description | Match Land Registry data exactly |
| Purchase price and deposit | Typically 5–10% of sale price |
| Timeline for notary signing | Standard is 30–60 days |
| Penalty clauses | Clear remedies if either party withdraws |
| Legal and tax expenses allocation | Clarifies who pays what |
| Jurisdiction clause | Specifies legal venue in case of dispute |
| Signature by both parties | Required for legal enforceability |
📌 We provide bilingual arras contracts and negotiate changes with sellers or agents.
🧑⚖️ What If the Seller Backs Out?
If the seller breaks the deal after signing arras:
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You are legally entitled to double your deposit back
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You can sue for enforcement of the sale (if confirmatory arras)
📌 We handle negotiations and court filings if necessary.
📅 Timing: How Long Is the Arras Period?
Typically:
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30 to 60 days between arras and signing the deed
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Extensions can be agreed in writing
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Missing the notary date without cause may trigger penalties
💡 Can You Cancel the Arras Contract?
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Buyer cancels: loses deposit
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Seller cancels: must refund double
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Mutual agreement: possible, with written terms
📌 We negotiate exits when needed — without litigation.
🧾 Real Example: Buyer Lost €20,000 After Signing Too Early
A British client signed arras before due diligence.
Later, unpaid community debts and illegal construction were discovered.
The buyer tried to withdraw — and lost the entire deposit.
✅ Borderless Lawyers now reviews all arras contracts in advance to avoid this.
📞 Buying in Malaga? Don’t Sign Arras Without a Lawyer
We review, draft, and negotiate arras contracts for foreign buyers — in English, French, Dutch, or German — so you avoid costly errors.