What Is a “Contrato de Arras” in Spain?

At SGM Abogados, we want to explain what it means, how it works, and why it is such an important step in the process.

What Is a “Contrato de Arras”?

A Contrato de Arras is a private agreement signed between a buyer and a seller before the final purchase deed (escritura pública) is signed before a notary. It can act as a reservation contract, (but is not to be confused with a more simple reservation contract. The contrato de arras is more protective and secure than a reservation contract, although it can also act as a kind of reservation contract in a sense, there are differences).

where:

• The buyer pays a deposit (normally 10% of the purchase price).

• The seller agrees to take the property off the market and sell it to that buyer.

This contract sets out the main conditions of the sale: price, deadlines, obligations of each party, and what happens if either side fails to complete.

Types of Arras

There are different kinds of arras in Spanish law, but the most common in real estate transactions is the “arras penitenciales” (Article 1454 of the Spanish Civil Code).

• If the buyer backs out, they lose the deposit.

• If the seller backs out, they must return double the deposit to the buyer.

This makes the contract a strong commitment for both parties.

Why Is It Important?

Signing a Contrato de Arras provides:

✅ Security – The property is reserved, and both parties are committed.
✅ Clarity – The main conditions (price, deadlines, included items, etc.) are written down.
✅ Legal Protection – In case of breach, the deposit system clearly defines the consequences.

What Should Be Included?

A well-drafted Contrato de Arras should cover:

• Full details of buyer and seller

• Property description (with reference to the Land Registry)

• Agreed purchase price and deposit

• Payment terms and deadlines

• Completion date at the notary

• Consequences of withdrawal or breach

• Any special conditions (mortgage approval, licences, repairs, etc.)

Why You Need Legal Advice

Although it may seem like a “simple” reservation, the Contrato de Arras is legally binding and can have significant consequences. Standard templates found online often leave out important protections.

At SGM Abogados, we review and draft arras contracts every day for our clients. We ensure that:

• The wording protects your interests.

• Deadlines are realistic.

• Any specific conditions (mortgages, paperwork, licences) are included.

Conclusion

The Contrato de Arras is a key step in buying or selling property in Spain. It secures the deal, sets out the conditions, and protects both buyer and seller if one side does not complete.

If you are planning to sign a Contrato de Arras, let us help you. At SGM Abogados, we specialise in property law for international clients and will guide you through every step of the process with clarity and security.

📞 Contact us today to make your property purchase in Spain safe and stress-free.