Contrato de Arras: The Private Purchase Contract Every British Buyer in Spain Needs to Understand (2026)
A couple from Surrey found their dream apartment in Estepona last spring. They loved it, the price was right, and the agent said someone else was interested. They handed over a €30,000 deposit and signed the arras contract the same afternoon.
Six weeks later, their Spanish mortgage application was rejected. They lost every penny of that €30,000.
They had not included a mortgage condition clause. Their abogado (they had not hired one) would have spotted that in five minutes.
The contrato de arras is the first legally binding commitment you make when buying property in Spain. It is not a formality. Understanding what you are signing before you put pen to paper is one of the most important things you can do as a British buyer.
What Is a Contrato de Arras?
The arras contract is a private purchase agreement between buyer and seller. It locks in the purchase price, the property, the deposit, and the target completion date. It is signed weeks or months before the final deed (escritura de compraventa) at the notary.
It is legally binding under the Spanish Civil Code. Once you sign and pay the deposit, you are committed.
The arras is not registered at the Land Registry. Only the escritura is. This is one reason why the due diligence that happens before signing matters so much.
The Three Types of Arras Contract
This is where British buyers often get caught out. “Arras” is not one thing. There are three distinct types, and they have very different legal consequences.
1. Arras Penitenciales (the standard type)
This is what you will encounter in the vast majority of resale transactions on the Costa del Sol. It is governed by Article 1454 of the Spanish Civil Code.
The rule is simple:
- If the buyer withdraws, they lose their deposit
- If the seller withdraws, they must return double the deposit
So if you paid €35,000 and the seller pulls out to accept a higher offer from someone else, they owe you €70,000. That right is clearly stated in law.
2. Arras Confirmatorias
A simpler deposit arrangement. There is no automatic double-money clause if the seller defaults. If either party backs out, the remedy is a court claim for breach of contract, not automatic forfeiture or doubling.
Less common in standard resales, but occasionally used. The key is that the contract text will not reference Article 1454.
3. Arras Penales
Similar to confirmatorias, but the contract includes a specific, negotiated penalty clause. Less common than penitenciales.
The practical point: Most Costa del Sol resale transactions use arras penitenciales. If you are unsure which type you are being asked to sign, ask your abogado before the pen touches the paper.
The 10% Deposit: How It Works
The standard deposit on a Spanish arras is 10% of the agreed purchase price. On a €400,000 property that is €40,000.
A few things British buyers need to know:
- The deposit is deducted from the purchase price at completion. You are not paying it on top of the price.
- Transfer it by bank wire only. Cash transactions over €1,000 are illegal in Spain under anti-money-laundering Law 10/2010. For property deposits, always wire.
- Check the destination account carefully. Confirm the account details directly with your abogado, not the estate agent. Property deposit fraud is real and the sums are large.
- You will need a Spanish bank account with an ES IBAN to hold funds cleanly. You will also need your NIE number to open one. If you have not sorted these yet, see our step-by-step buying guide first.
A lower deposit (5-8%) is sometimes negotiated on high-value properties or in buyer-friendly market conditions. It is worth asking, though sellers generally expect 10%.
What the Arras Contract Should Include
A properly drafted arras will spell out:
- Full property description, referencing the cadastral reference from the nota simple
- Agreed purchase price
- Deposit amount and the bank account it is paid to
- Target completion date (how long you have to sign the escritura)
- Which party pays which closing costs (standard: buyer pays ITP or IVA+AJD, notary fees, Land Registry; seller cancels any outstanding mortgage and pays plusvalía municipal)
- The type of arras and the relevant penalty clause
- Any suspensive conditions (mortgage approval, survey result, etc.) – if these are not written in, they do not protect you
If the draft you are given is vague on any of these, do not sign until your abogado has tightened it up.
Your Rights If Things Go Wrong
If you withdraw
Under arras penitenciales, you forfeit the deposit. There is no negotiation and no partial refund. This is the cost of changing your mind.
This is why thorough due diligence before signing matters. Once you are in, you are in.
If the seller withdraws
They must return double your deposit. If you paid €40,000, you are owed €80,000.
In practice, sellers who accept a higher offer sometimes try to avoid paying. Your abogado can pursue this through the Spanish courts, and the double-money rule is well established in case law. Recovery is realistic, but it takes time and adds stress.
Mortgage condition clause
If you are buying with a Spanish mortgage, include a condición suspensiva de financiación in the arras. This clause means that if your mortgage application is formally refused, you can withdraw and recover your deposit.
Without it, a rejected mortgage application leaves you with no deposit and no property. The couple from Surrey found this out the expensive way.
Due Diligence Before You Sign
The time to discover problems is before you commit, not after. Your abogado should complete the following checks before you sign the arras:
- Nota simple from the Land Registry: confirms ownership, any mortgages, liens, or embargoes on the property
- Identity verification: confirms the seller has the right to sell
- Community fee certificate (certificado de deudas): confirms no outstanding fees that would transfer to you
- IBI (council tax) receipts: confirms payments are up to date
- Occupation licence (licencia de primera ocupación): critical for new builds and any property built after 1988
- Cadastral information: confirms the property boundaries and built area match what you are buying
- Energy performance certificate (CEE): legally required for any sale or rental
None of this takes more than a week. Rushing to sign arras because “someone else is interested” is how people lose deposits.
How Long Before Completion?
The gap between signing the arras and completing at the notary is typically 30 to 90 days for a standard resale. This gives time for:
- Your abogado to complete all legal checks
- Your mortgage (if applicable) to be approved and notarised
- The notary appointment to be booked
- Any pre-completion issues to be resolved
Extensions are possible by mutual written agreement. They are not automatic.
Off-plan purchases work differently, usually with a separate contract de compraventa and stage payments over the build period. If you are buying new-build, see our guide to buying a new build in Spain.
Red Flags to Watch For
Do not sign an arras if:
- You cannot get an English translation before signing
- There is pressure to sign on the same day you view the property
- The contract has no cadastral reference for the property
- The seller refuses to provide a nota simple
- The deposit account cannot be verified
- There is no clear completion date (or it says “approximately”)
- Any clause attempts to waive your rights under Article 1454
- Your abogado has not reviewed it first
The Role of Your Abogado
You need your own Spanish property lawyer before anything is signed. Not the developer’s in-house solicitor. Not the agency’s recommended contact. Your own, independent abogado.
At the arras stage their job is to:
- Review the draft contract and flag any issues or missing clauses
- Confirm the ownership and legal status of the property
- Negotiate contract terms if needed
- Advise you on the right type of arras for your situation
- Check all the due diligence items listed above
- Ensure the deposit goes to the correct account
Full conveyancing costs on the Costa del Sol typically run to €1,500 to €3,000, which covers the arras review through to completion. That fee is worth every euro when it protects a €40,000 deposit.
For guidance on finding the right lawyer, see our guide to choosing a Spanish property lawyer as a British buyer.
If you cannot travel to Spain to sign in person, your abogado can act on your behalf under a power of attorney. See our power of attorney guide for the practical steps.
Step-by-Step: What to Do Before You Sign
- Agree a price verbally with the agent. Do not pay anything yet.
- Instruct your abogado immediately. Give them the property address and cadastral reference.
- Your abogado pulls the nota simple and checks for encumbrances.
- They review the draft arras contract and request any amendments.
- If you are buying with a mortgage, ensure a condición suspensiva is included.
- Once you are satisfied, sign and transfer the deposit directly to the confirmed account.
- Your abogado manages everything through to escritura.
Frequently Asked Questions
Can I negotiate the deposit amount?
Yes. Five per cent is occasionally agreed, particularly on properties above €1m or in slower markets. Most sellers expect 10%, and offering significantly less can look like a lack of commitment.
Is the arras registered at the Land Registry?
No. It is a private contract. Only the final escritura is registered. This is why the legal checks before signing are so important.
What if I find a survey problem after signing?
Unless you have a specific surveyor’s condition written into the arras, the standard rules apply: you either proceed or lose your deposit. Property surveys are not standard in Spain the way they are in the UK, but you can commission an independent technical inspection (informe pericial) before signing. Ask your abogado to include a condition clause covering any major structural defects.
Do I need to be in Spain to sign the arras?
No. Your abogado can sign on your behalf under a poder notarial (power of attorney). Many British buyers secure a property this way without making an additional trip.
What happens to the deposit if the property has a legal problem discovered after signing?
If the issue is something your abogado should have found (a mortgage, embargo, or title defect), you have a claim against them. If it is something genuinely unforeseeable, the remedy depends on the contract terms. A well-drafted arras will include provisions for this.
Ready to Take the Next Step?
The contrato de arras is the moment buying a property in Spain becomes real. It is also the moment where good preparation pays off most.
If you are at the point of finding a property you like and want to understand the process before you commit to anything, get in touch. We can connect you with an experienced, English-speaking abogado on the Costa del Sol and help you find the right property through our network, including off-market listings you will not find on the portals.
Tell us what you are looking for and we will take it from there.
