The reservation contract is the first document most buyers sign. A short guide to what it does and what to look for.
The contrato de arras is the reservation contract, and it is usually the first document a buyer signs and the point at which a deposit is paid. It fixes the price, the parties and the date for completion, and takes the property off the market while the purchase is prepared.
It is a useful document and there is nothing unusual about it. It simply repays reading carefully, because the different forms of arras have quite different consequences.
Arras penitenciales are the most common. They allow either party to withdraw: the buyer forfeits the deposit, the seller repays double. Arras confirmatorias confirm the sale and do not provide for withdrawal in the same way. Arras penales set a penalty while leaving the sale enforceable.
The heading on the document does not always match the terms beneath it, which is why we read the clauses rather than the title.
The first is what happens if a mortgage is not granted. Where the contract makes no express provision, the buyer carries that risk. It is a straightforward point to agree at the outset.
The second is the completion date and what follows if the seller is not ready, for instance because a charge has still to be cancelled. A little flexibility written in at this stage saves a good deal of difficulty later.
Let us see the contract before you sign it. The searches, the registry position and the planning status all belong at this stage rather than afterwards, and any amendment worth making is far easier to agree before the deposit has been paid than after.
This page gives general information about Spanish law and is not legal advice. Every case turns on its own facts and should be assessed individually.
Tell me a little about what you are planning and I will reply personally, usually within one working day.