Deposit contract (arras) in Spain: sign without losing your deposit
The types of deposit (arras), what the contract must include and what happens if someone pulls out. If you need it, an English-speaking lawyer reviews it before you sign.
A deposit contract (contrato de arras) is the private agreement signed before the title deed (escritura): the buyer hands over a sum (the deposit, or señal) that reserves the home and is deducted from the price, and the deadline for signing before a notary is set.
How much deposit is paid
The law sets no minimum or maximum amount. When buying a flat, around 10% of the price is usual, but a different amount can be agreed.
What happens if the deposit contract is breached
It depends on the type of deposit and on what was agreed: with a penitential deposit, whoever pulls out loses the deposit or returns double. It is best to claim in writing and in time; a lawyer specialising in property law can assess your case.
Types of deposit
The three types of deposit, side by side
See what happens with each one if someone pulls out.
01
The most common
Penitential deposit
Arras penitenciales (Article 1454 of the Civil Code): this allows either party to pull out.
If the buyer pulls out
They lose the deposit they paid.
If the seller pulls out
They must return double the deposit.
02
Confirmatory deposit
Arras confirmatorias: the deposit is a payment on account of the price and nobody can simply withdraw.
If the buyer pulls out
The seller can demand the purchase, or cancel and claim damages.
If the seller pulls out
The buyer can demand the sale, or cancel and claim damages.
03
Penal deposit
Arras penales: this works as a penalty for breach, but does not release anyone from the obligation to buy or sell.
If the buyer pulls out
They pay the penalty and are still obliged to buy.
If the seller pulls out
They pay the penalty and are still obliged to sell.
Be careful: if the contract doesn't expressly say the deposit is penitential, it is usually interpreted as confirmatory.
Checklist
What a deposit contract for a home must include
Four points to go through with the contract in front of you, before you sign.
Total price, the amount of the deposit and the deadline for signing the title deed.
Type of deposit (if penitential, citing Article 1454 of the Civil Code).
That the home is handed over free of charges and with the annual property tax (IBI) and community fees paid up.
What happens if you are not granted the mortgage: without this clause, with a penitential deposit you could lose your deposit.
Before you sign
About to sign a deposit contract? Have it checked first
A few minutes' review can save you from losing your deposit. Tell us about your case and a property lawyer will look at it with you.
A deposit contract you're about to sign, one already signed or one where someone has pulled out.
02
02A specialist
A property lawyer reviews it
A bar-registered property lawyer studies your case and contacts you.
03
03No obligation
You sign with peace of mind
You know the risks, the options and the quote before you sign anything.
No-obligation enquiry
Unsure about your deposit contract?
Tell us about your case: a property lawyer will review the contract or help you if someone has pulled out.
It costs nothing to enquire
Your details, always confidential
No obligation to hire anyone
Your enquiry
Under 2 min
Confidential
No obligation
Frequently asked questions
Questions about the deposit contract
What happens if the buyer pulls out after signing the deposit contract?
With a penitential deposit (arras penitenciales), a buyer who withdraws loses the amount paid. With a confirmatory deposit (arras confirmatorias), the seller can demand that they complete the purchase, or cancel the contract and claim damages.
What if the seller receives a better offer?
If the deposit is penitential, they can withdraw, but must return double what you paid. If it is confirmatory, you can demand that they sell you the home.
Do I get my deposit back if the bank doesn't grant me the mortgage?
Only if the contract provides for it. That is why it is worth including a clause that makes the purchase conditional on the mortgage being granted.
How much deposit is usually paid?
There is no amount set by law. When buying a home, around 10% of the price is usual, although the parties can agree a different amount.
Does the deposit contract have to be signed before a notary?
No. It is a private document and is valid with the parties' signatures. What is signed before a notary is the sale and purchase deed (escritura de compraventa).
What the people we put in touch with their lawyer tell us.
4.9/5
★★★★★
Average rating on Google
“★★★★★
From the very first moment they inspired a lot of confidence. They explained everything clearly and answered my questions in a friendly, professional way. Without a doubt, a very positive experience.
María G.Google
“★★★★★
Excellent treatment and impeccable service. I especially appreciate that they explained the different options available and the steps I needed to follow. Very professional and attentive.
Carlos M.Google
“★★★★★
I was looking for advice and found a team that made me feel listened to from the start. I would highlight how clearly they explain things, how approachable they are and the peace of mind they give you throughout the whole process.
María G.Google
Carlos M.Google
Laura R.Google