Why the pre-purchase agreement matters?
In Spain, buying a property doesn’t start at the notary’s office. It begins earlier — with the Contrato de Arras, or pre-purchase agreement, a document that formalizes your intent to buy and sets the rules of the deal.
For many foreign investors, this is the first legally binding step, and yet it’s also one of the most misunderstood. Understanding what it includes — and what risks it carries — can protect you from costly mistakes.
What exactly is a Contrato de Arras?
The Contrato de Arras is a private agreement between buyer and seller that reserves the property and defines the main terms of the transaction.
By signing it, both sides commit to completing the sale under agreed conditions. At this stage, the buyer typically pays a deposit of around 10% of the purchase price.
It’s not just a formality — it’s the first step that legally ties both parties to the deal.
The main elements of the agreement
A properly drafted Contrato de Arras should include:
- Identification of both parties (buyer and seller) and details of the property.
- Purchase price and payment terms.
- Deposit amount (usually 10%) and clear rules on when it can be retained or refunded.
- Deadline for signing the final notarial deed (escritura pública).
- Responsibilities and conditions for both sides (e.g., mortgage approval, legal checks).
- Consequences of withdrawal — what happens if one of the parties decides not to proceed.
The key clause: what happens if someone backs out?
This is where things get serious. Under Spanish law, the Contrato de Arras establishes that:
- If the buyer withdraws, the seller keeps the deposit.
- If the seller withdraws, they must return double the deposit to the buyer.
That’s why clarity and precision are crucial — vague or incomplete clauses can lead to disputes or even loss of funds.
Common mistakes foreign buyers make
- Signing a standard template found online without legal review.
- Paying a deposit before verifying the property’s legal status.
- Not setting clear timelines or penalties for delays.
- Failing to include conditions like “subject to mortgage approval.”
At The Lawyers, we see these scenarios far too often — and every one of them can be avoided with proper legal guidance.
How The Lawyers can help?
We make sure every Contrato de Arras you sign is 100% secure. Our legal team will:
- Draft or review the agreement in both Spanish and your language.
- Ensure that all conditions and deadlines protect your interests.
- Confirm that the seller has full legal ownership and no outstanding debts.
- Oversee the deposit transfer and transaction timeline.
We don’t just check documents — we protect your peace of mind.
In Spain, the Contrato de Arras is the bridge between intention and ownership. It’s the step that transforms a dream into a binding deal — but also the moment where a single mistake can cost thousands of euros.
Before you sign, make sure you understand every clause. And if you want full confidence that your agreement is solid and fair, The Lawyers is here to guide you — from the first signature to the notary’s office. Click here to contact us.
