The contrato de arras is a preliminary agreement between the buyer and seller of a property, confirming both parties’ commitment to completing the sale. It typically includes a deposit of between 5% and 10% of the property’s value, serving as a reservation during the buying process.
The most common type in Spain is the arras penitenciales contract (Article 1454 of the Spanish Civil Code), which states that if the buyer withdraws, they forfeit the deposit; if the seller withdraws, they must return double the amount received.
If the buyer requires a mortgage, a suspensive condition can be included, clarifying that the contract will be cancelled if financing is not granted.
As with any legal agreement, it is essential to fully understand the terms before signing. If in doubt, it is advisable to consult a notary.
