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.
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: the buyer reserves the property, and the seller commits not to sell it to a third party. The arras contract, therefore, secures the transaction in the event of unjustified withdrawal by one of the parties.
- Payment of a deposit called Señal (click here to learn more about the Señal) by the buyer. It represents between 3% and 10% of the property price.
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 exchange for compensation.
- If the buyer withdraws, they lose their deposit (the Señal).
- 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.
- Description of the property.
- Sale price.
- Amount of the Señal (deposit): between 3% and 10% of the property price.
- Deadline for the final sale deed: generally between 1 and 3 months.
- 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 before a notary, to benefit from supervision by a competent authority and to be able to add specific clauses.
- Have the contract checked by a lawyer specializing in real estate if you do not sign it before a notary.
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?
An arras contract is a private agreement between the buyer and the seller that commits both parties to a real estate transaction. The buyer reserves the property and pays a deposit (the Señal), which is equivalent to between 3% and 10% of the property price, while the seller agrees 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).
