If you’re buying a property in Spain, there’s a good chance someone will mention “el contrato de arras” early on in the process. It’s one of the most important steps in a Spanish property transaction—but what exactly is it, and how is it different from what you may be used to in your home country?

Let’s break it down in a super clear, no-nonsense way and compare it to how things work in the UK, USA, and the Netherlands.

🌟 What Is the Arras Contract?

The arras contract is a private agreement between the buyer and the seller where both parties:

• Commit to the sale,

• Agree on the price and terms, and

• The buyer pays a deposit (usually 10%).

This is more than just a handshake—it’s legally binding. Think of it as a serious “save the date” for the final sale.

✅ Why Is It Important?

It locks in your commitment before going to the notary and signing the official purchase deed (escritura pública). It gives both sides security, while still allowing a bit of breathing room before the final step.

💸 What Happens If Someone Backs Out?

This is where arras is different (and kind of intense!):

• If the buyer backs out (without legal cause), they lose their deposit.

• If the seller backs out, they must return double the deposit to the buyer.

💡 Yes, double. It’s a strong motivation for both sides to move forward seriously.

🔍 What’s the Process Like?

1. You find the home you love. So you negotiate the price, maybe!?

2. Your agent drafts an arras contract with the agreed price, timing, and conditions.

3. You pay the deposit (usually 10%).

4. You do final checks, get your financing (if needed), and go to the notary to complete the purchase.

So, How Does This Compare to Other Countries?

Let’s look at what you might be used to:

🇬🇧 UK:

• You make an offer, but it’s not binding until exchange of contracts.

• There’s no automatic deposit penalty if someone pulls out before that stage.

• Chains can fall apart at the last minute.

👉 In Spain, with an arras, there’s more financial commitment earlier in the process.

🇺🇸 USA:

• Buyers usually make an earnest money deposit, but it’s often held in escrow and refundable under certain conditions (financing, inspection, etc.).

• Backing out may cost you, but usually not the entire deposit.

👉 In Spain, it’s stricter. The moment you sign the arras, there’s more at stake if you change your mind.

🇳🇱 Netherlands:

• Buyers sign a preliminary purchase contract (voorlopig koopcontract) and have a 3-day cooling-off period.

• After that, there are penalties (often 10%) for pulling out.

👉 Similar to Spain’s arras, but with a short grace period that Spain doesn’t typically have.

✍️ Key Takeaways for Expats

• The arras is a legally binding deposit agreement—not just a friendly gesture.

• You commit by paying ~10%, and backing out has consequences.

• It helps protect both parties from last-minute changes.

• It’s more binding (and risky) than in the UK or US, but somewhat similar to the Dutch system (without the cooling-off period).

Buying in a new country can be overwhelming, but with the right guidance, the arras contract is a powerful tool that adds clarity and security to your Spanish property journey.