Contrato de Arras Deposit Spain — What It Commits You To
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.
What is 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. 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. 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.
What matters about these two points
The answer box above states the case. The two points it is built from carry their own heading here — together with what each of them means in practice.
How the deposit rule usually plays out
Before a deposit is paid, establish which form of arras the contract means — Spanish practice knows several, and they differ in exactly this legal consequence. The amount is negotiable; the legal consequence is not.
Why carefully drafted wording protects the deposit
The financing clause is the cheapest insurance in the whole purchase. It costs nothing but negotiation — and it only works if it names the deadline, the lender and the evidence of genuine effort, rather than referring to financing in general terms.
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.
Three kinds of arras — and they don't work the same way
"Contrato de arras" is an umbrella term. Spanish law recognises three variants, and which one was agreed decides what happens if someone pulls out. Arras penitenciales are what most people have in mind: either side may walk away, the buyer forfeiting the deposit, the seller repaying double. Arras confirmatorias, by contrast, merely confirm the sale and grant no right of withdrawal at all — a buyer who pulls out can be sued for performance or damages, so the exposure is not capped at the deposit. Arras penales operate as a contractual penalty. Where the contract says nothing explicit, the classification is left to interpretation, which is exactly the situation to avoid. Naming the type of arras in the text itself is a one-line matter that decides how much a withdrawal can cost.
The three kinds of arras — and why the heading is not enough
Spanish law recognises three forms. Arras penitenciales give both sides a right to withdraw, against loss or doubling of the deposit — this is the version most people have in mind. Arras confirmatorias merely confirm that a contract exists and give no withdrawal right at all: whoever pulls out can be sued for performance or for full damages, which can run well beyond the deposit. Arras penales fix a penalty while leaving the right to demand performance intact. What decides is not the title of the document but the wording in it — and where the wording is ambiguous, courts tend to assume confirmatorias, the most expensive version for whoever wants out.
Related glossary terms
Escritura →
The Escritura pública de compraventa is the notarial deed of sale in Spain.…
Clarity about the escritura removes the worry of having to travel in person…
Nota Simple →
The Nota Simple is the official land registry extract from the Registro de la…
Checking the Nota Simple protects against unpleasant surprises such as hidden…
CPCV (Contrato-Promessa de Compra e Venda) →
The CPCV is the binding Portuguese preliminary contract when buying property…
Once you sign the CPCV you are bound — financing should already be in place…
Mortgage calculator
Calculate your monthly instalment
Monthly instalment, total cost and equity requirement for your exact figures.
Questions about Contrato de arras (Deposit)?
Free, no-obligation initial consultation.