The arras are a key element in the real estate purchase process in Spain. They designate a preliminary contract in which the buyer and seller commit to the transaction.
This is the equivalent of compromise in the French system, for example.
What is an arras contract?
It is a private contract signed between the buyer and the seller once they have defined the terms of the real estate transaction. The document establishes:
- Mutual commitment: theArras contract is a private agreement between buyer and seller. It secures the transaction in the event of an unjustified withdrawal by one of the parties.
- This involves the payment of a deposit by the buyer, usually 10% of the property price. This completes the first instalment of the señal to reach the full 10%.
In practice, you have two options: directly sign a “contrato de arras” (pre-sale agreement) or first go through a “contrato de reserva” (reservation contract). In both cases, it is common to pay an amount called “señal” (deposit) or “reserva” (reservation) at the time of the purchase offer. This amount, generally between 1,000 € and 5,000 €, serves to demonstrate the seriousness and credibility of your offer.
What are the different types of arras contracts?
There are three types of arras contracts in Spain:
- Arras confirmatorias: the contract firmly commits both parties without the possibility of unilateral withdrawal. Legal recourse is necessary in the event of a dispute. The deposit paid serves as a down payment on the sale price.
- Arras penales: they are designed to guarantee the future sales contract and provide for compensation if the operation is not carried out according to the agreed terms. They compel compliance with the agreement and are regulated by the Civil Code (article 1152).
- Arras penitenciales: this is the most common type of arras contract. It allows one of the parties to withdraw from the contract in return for compensation.
Penalties for non-compliance:
- If the buyer withdraws, he loses his deposit.
- If the seller withdraws, they must reimburse double the amount of the deposit paid.
What information must the arras contract contain?
- Identity of the buyer and seller.
- Property description and location.
- Sale price.
- Precise amount of down payment.
- Deadline for the final sale deed: generally between 1 and 3 months.
- Terms of payment.
- Contingent liabilities.
- Allocation of costs.
- Consequences in case of non-compliance.
Advice from Terreta Spain experts
- Check the legal situation of the property.
- Be clear about the deadlines to be respected in the contract.
- Plan for a negotiated exit and favor the arras penitenciales.
- We advise you to sign your arras contract with the help of a trusted partner like Terreta Spain.
- Have protective clauses added. We always do.
How do you obtain an arras contract?
- If you sign it at the notary's office, they will provide the contract.
- If you do not sign before a notary, the real estate agency will be responsible for providing you with the contract.
FAQ: Arras in the Real Estate Purchasing Process in Spain
What is an arras contract?
A contrat d'arras is a private agreement between buyer and seller that commits both parties to a real estate transaction. The buyer reserves the property and pays a deposit, equivalent to 10% of the property price, while the seller undertakes not to sell to a third party.
What are the different types of arras contracts in Spain?
Arras confirmatorias: firm commitment from both parties, without the possibility of unilateral withdrawal.
Arras penales: provide for compensation in the event of non-compliance but require compliance with the agreement unless otherwise stated.
Arras penitenciales: allow for withdrawal in exchange for compensation (buyer loses their deposit, seller reimburses double).
What should an arras contract contain?
- The consequences in the event of non-compliance with the commitments.
- The identity of the parties (buyer and seller).
- The description of the property.
- The sale price and the amount of the Señal (3% to 10% of the price).
- The deadline for the final sale deed (generally 1 to 3 months).
How to sign anarras contract without taking too much risk?
Sign with the help of a trusted partner like Terreta Spain. We defend your interests and include protective clauses.
