Contrato de arras (Deposit)
The contrato de arras is Spain's reservation and preliminary contract — it typically involves a deposit that is usually forfeited if the buyer withdraws, and often has to be repaid double if the seller withdraws.
How the deposit rule usually plays out
If the buyer withdraws after signing without a reason recognised in the contract, the deposit (arras) is generally forfeited in full to the seller as compensation. If the seller withdraws instead, they typically have to repay double the deposit received to the buyer — a symmetric but real financial consequence on both sides that underlines just how binding this contract is.
Why carefully drafted wording protects the deposit
A carefully worded arras contract can tie the payout to a successful financing approval (a so-called financing clause) — if financing genuinely can't be secured despite a serious effort, this prevents the buyer from losing the deposit anyway. Without such a clause, the buyer bears the full risk of a failed financing alone.
How the arras contract relates to the Escritura
The contrato de arras is legally binding but doesn't yet transfer ownership — that happens only with the notarial Escritura (see Escritura). Between the arras contract and the Escritura there's usually a window in which financing, the tasación and the bank's review need to be completed before the actual transfer of ownership takes place.
Related glossary terms
Escritura
The Escritura pública de compraventa is the notarial deed of sale in Spain. On signing before the notary, ownership passes; it is then registered in the land registry.
Nota Simple
The Nota Simple is the official land registry extract from the Registro de la Propiedad. It shows the owner, charges, mortgages and encumbrances on a property.
CPCV (Contrato-Promessa de Compra e Venda)
The CPCV is the binding Portuguese preliminary contract when buying property, before the notarial Escritura. Unlike a non-committal reservation, it legally binds both sides to buy or sell.
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