Buying property in Spain: what to review before paying an arras deposit

You have found a property and are asked to pay a deposit to secure it. Before transferring money, read what the agreement actually commits you to do. A short reservation document can still contain important conditions, dates and consequences.

Do not rely on the word “arras” alone

Article 1454 of the Spanish Civil Code describes consequences associated with the arras it regulates. That does not mean every payment called a deposit, reservation or arras automatically gives either party the same right to withdraw. The wording and legal nature of the agreement need to be assessed. Spanish Civil Code, Article 1454.

Ask what happens if the buyer cannot complete, if the seller withdraws or if a condition is not met. The answers should come from the agreement being proposed, not from a general rule quoted in a message.

Connect the deposit to the full transaction

Check the identity and capacity of the parties, the property description, price, payment recipient and intended completion date. Establish what documents are available and which investigations remain outstanding. A payment schedule is only one part of the review.

If someone signs on another person’s behalf, ask how their authority will be verified. If bank instructions change, verify them through a trusted channel before paying. Do not rely solely on a forwarded email.

Make financing assumptions explicit

If you need a mortgage or funds from a sale elsewhere, say so before signing. Ask whether and how the agreement deals with financing, valuation or another transaction failing. An informal expectation that “the bank should approve it” is not a written contractual condition.

For an international buyer, also allow for document preparation, translations and travel or representation arrangements. These are planning questions to resolve, not reasons to accept a deadline you cannot meet.

Questions to resolve before the transfer

• What exactly does the payment secure, and who receives it?
• What is binding now and what remains conditional?
• What happens if financing or another necessary step fails?
• Which documents and property checks are outstanding?
• What happens if either party does not complete?

Keep the agreed version, supporting correspondence and proof of payment. Make sure later amendments are clear and traceable rather than spread across inconsistent messages.

Separate property and residence planning

If the purchase is part of a move to Spain, review the immigration and tax position separately. A suitable property and a suitable residence route answer different questions. Coordinate the timing before making commitments that depend on an unconfirmed application.

Official sources

• BOE: Código Civil