Buying a property in Spain does not start with a notary.
Before the buyer and seller meet to sign the public deed, the notarial deed transferring ownership, they typically agree on the price, closing date, and other terms of the transaction. A contract of sale often arises at this stage.
To a Polish buyer, the name might sound rather innocent. It's often translated simply as "deposit agreement." And it's worth pausing here for a moment.
Spanish tapestries are not a single, specific equivalent of Polish deposits. Depending on the content of the document, they can serve different purposes and lead to completely different consequences if one party is unwilling or unable to complete the purchase.
Therefore, before depositing money, the most important question is not:
“How much is the tapestry?”
Just:
“What kind of tapestry am I signing and what exactly does this contract entail?”
Is the contrato de arras obligatory?
NO.
Spanish law does not require that every property sale be preceded by an arraise agreement. However, this solution is very often used in practice.
The tapestry allows you to organize the period between the decision to purchase and the signing of the notarial deed.
The document may specify, among other things:
✓ exact price of the property
✓ the amount paid
✓ date of signing the notarial deed
✓ payment method and schedule
✓ equipment remaining in the property
✓ financing conditions
✓ consequences of non-performance of the contract
✓ other arrangements important for a specific transaction
Therefore, it's not advisable to treat the tapestry as a simple reservation form. Signing such a document can have significant financial consequences.
Arras is not always the right to withdraw
This is one of the most important things to know.
Sometimes the buyer hears:
"You pay a deposit. If you back out, you lose the money, and if the seller backs out, they give you back twice that amount."
Such a mechanism actually exists in Spain, but it concerns a specific type of tapestry.
Not every contract called a contrato de arras automatically works this way.
In practice, there are three basic types:
- Arras penitenciales
- Arras confirmatorias
- Arras penales
And the differences between them are really important.
Arras penitenciales
You can give up, but it comes at a price
It is this variant that corresponds to the mechanism we most often associate with Spanish tapestries.
If the parties have agreed on penitential arras, the buyer may withdraw from the transaction, losing the transferred amount.
However, if the seller withdraws, he should generally return the tapestry received in double the amount.
Example:
The buyer pays 20,000 euros as a security deposit.
If he resigns under the terms of this agreement, he may lose €20,000.
If the seller withdraws under the same conditions, he may be obliged to return EUR 40,000.
It is very important, however, that the content of the document clearly shows that the pages actually contain tapestries of penitence.
The word tapestry alone is not always enough.
Arras confirmatorias
Here it is not enough to say "I resign"
Arras confirmatorias work differently.
The amount transferred is primarily a confirmation of the conclusion of the contract and part of the agreed price.
This does not automatically mean that the buyer can simply give up, leave the money paid and close the case.
If one party fails to fulfill its obligations, the other party may have the right to demand performance of the contract or its termination, and in certain situations also compensation for damages.
Therefore, the consequences can be much more serious than just:
"I lose my deposit and I'm resigning.".
Arras penales
When the deposit also serves as security
Arras penales are primarily of a protective nature.
The parties may determine in advance the financial consequences of a situation in which one of them fails to fulfill the agreed obligations.
However, they should not be identified with arras penitenciales.
The mere establishment of a financial sanction does not automatically mean that the parties have the free right to withdraw from the contract.
In this case, the exact wording of the document is particularly important.
What happens if the buyer changes his mind?
There is no single answer.
And that is why the sentence:
"I paid for the tapestry, so I'll just lose the deposit"
can be a very risky assumption.
In the case of arras penitenciales, the buyer may use the provided withdrawal mechanism and lose the amount paid.
In the case of arras confirmatorias, simply leaving the money to the seller does not necessarily end the matter.
In the case of arras penales, the consequences will depend primarily on the provisions of the contract.
Therefore, what always matters is not only the name of the document, but above all its content.
What if the seller backs out?
Here too, everything depends on the type of tapestry.
In the case of arras penitenciales, a characteristic feature is the mechanism of returning to the buyer double the value of the amount received.
For other types of contracts, the effects may be different.
Claims may be made regarding the performance of a contract, its termination or specific monetary performance.
Therefore the statement:
"the seller always gives double the deposit"
is simply too much of a simplification.
What about a mortgage?
This is especially important for people who do not finance the purchase solely from their own funds.
Let's imagine the situation:
the buyer signs the tapestry, hands over a significant amount of money, and a few weeks later the bank refuses to finance.
Is the money automatically returned?
This should not be assumed.
If obtaining a loan is a necessary condition for carrying out the transaction, it should be appropriately stated in the contract.
You can specify the conditions for obtaining financing, the deadline for its fulfillment and the consequences of the bank's refusal.
Without appropriate provisions, the mere refusal of a loan does not necessarily mean an automatic refund of the funds.
How much is the arrassa when buying a property in Spain?
There is no single statutory amount that applies to every transaction.
In practice, it is common to see payments equivalent to around 10 percent of the property price, but this is not a strict rule.
The amount of the arraise may depend on the value of the property, prior reservation, arrangements between the parties, the stage of the transaction or the schedule of subsequent payments.
Therefore, for one property it will be 10 percent, while for another the conditions may be completely different.
What should a well-prepared arras contract include?
The point is not to make the document have as many pages as possible.
The most important thing is to be precise.
It should be clear:
✓ who is selling the property and who is buying it
✓ what specific property does the contract concern?
✓ what is the total price
✓ what amount is paid upon signing
✓ what is the nature of this payment
✓ when the notarial deed will be signed
✓ how the remaining price will be paid
✓ what are the consequences of failure to comply with the arrangements
✓ whether the purchase is dependent on obtaining a loan
✓ what equipment remains in the property
✓ what additional arrangements have been agreed upon by the parties
Equally important is prior verification of the property itself, its owner, legal status and any encumbrances.
Arras and regular property booking
This is also worth distinguishing.
Before the actual arras contract you can find a reservation document and a reservation fee.
This does not mean, however, that every reservation and every tapestry produces the same effects.
The name of the document is less important than its content.
Therefore, before making a transfer, it is worth knowing:
✓ what exactly are we signing
✓ whose account the money goes to
✓ whether the amount will be included in the price
✓ in what situations can it be returned
✓ what happens if the transaction is not completed
One card can have very specific consequences
Contrato de arras does not have to be a document of several dozen pages.
But it is not the number of pages that determines its importance.
At the time of signing, the most important elements of the future purchase are often already agreed upon, and the buyer hands over the actual money.
Therefore, the tapestry should be treated as one of the most important moments of the entire transaction, and not as a formality between finding the property and visiting the notary.
So the most important question is not:
“Do I sign the tapestry?”
Just:
“What exactly am I signing and what are the consequences?”
Frequently asked questions about the tapestry
Is contrato de arras mandatory in Spain?
No. The transaction can be completed without prior signing of the tapestry, although this is a very common solution.
Is arras the Spanish equivalent of the Polish deposit?
Not directly. Arras can serve various purposes, so the effects depend on the type of contract and its specific provisions.
Does a buyer always lose the tapestry if they back out?
No. This mechanism is primarily characteristic of penitentiary arras. For other types, the consequences may be different.
Does the seller always refund double the amount?
No. The double return mechanism applies primarily to penitentiary tapestries.
Is the tapestry always 10 percent?
No. This is a common value, but there is no single mandatory statutory rate.
Does a loan denial mean an automatic refund?
Not always. If the purchase depends on bank financing, this should be clearly stated in the contract.
Does the tapestry transfer ownership of the property?
No. The formal transfer of ownership takes place later, when the escritura pública is signed before a notary.
Summary
The Contrato de arras may look like one of many documents signed along the way to buying a property in Spain, but its significance is much greater.
It is at this stage that the parties often agree on the most important terms of the transaction and a significant portion of the money is transferred.
Therefore, when choosing a tapestry, it is not worth focusing only on how much you have to pay.
Much more important is:
what is the nature of this payment, what rights does it give to both parties and what exactly will happen if the transaction does not go according to plan.
When purchasing real estate in another country, knowing what you are signing is simply one of the most important elements of a safe transaction.
