Lately, I’ve seen more and more friends on the forum discussing buying a home, which is great! However, I’ve also noticed that some people are a bit confused about the property buying process here in Spain, especially when it comes to signing contracts. As someone who’s been through the Spanish property purchase contract process, I want to talk about the first important document you’ll sign—the deposit agreement—to hopefully help you avoid some common mistakes.
This contract is crucial as it essentially locks in the deal between you and the seller. Once you sign it and pay the deposit, the property is reserved for you. But the clauses can be tricky, and it’s easy to fall into a trap with the Oferta de Compra. For example, if you’re interested in a property with no debts, but the contract doesn’t specify that it is ‘libre de cargas’ (free of liens and encumbrances), you could face major problems later. So, read every single word carefully!
Key Clauses You Must Understand in the Contract
I’ve put together a checklist you can use when reviewing the contract to ensure all the information is accurate:
- Buyer and Seller Information: Full names, NIE numbers, and addresses. Not a single letter should be wrong.
- Detailed Property Description: Address, property registration number, size, included facilities, etc. This should perfectly match the information on the property deed (nota simple).
- Total Price and Deposit: The final purchase price, the deposit amount, and the payment method and date.
- Transaction Deadline: The agreed-upon timeframe for signing the final public deed of sale (escritura pública) at the notary’s office. This is typically 1 to 3 months.
- Allocation of Costs: Who is responsible for the agency fees, notary fees, taxes, etc. This must be clearly stated. Don’t rely on verbal promises from the agent; everything must be in the contract.
Verbally Promised Furniture and Appliances: This is a common source of problems. If the seller promises to leave any items, make sure they are listed in an annex to the contract.
What are the Differences Between the Types of Arras?
There are mainly three types of deposit agreements in Spain, each with completely different legal implications. It’s essential to understand which one you are signing. The most common is the Arras Penitenciales, which offers the most flexibility for both buyer and seller.
| Type | Consequences of Default | Commonality |
|---|
| Arras Penitenciales | Buyer backs out, loses deposit; seller backs out, must return double the deposit. | Most common |
| Arras Confirmatorias | Neither party can unilaterally withdraw. The defaulting party can be taken to court and forced to complete the sale. | Less common |
| Arras Penales | In addition to the deposit penalty, the defaulting party may have to pay an extra penalty specified in the contract. | Uncommon |
And the most important point: Hire a lawyer! Hire a lawyer! Hire a lawyer! I can’t stress this enough. Spending a few hundred to over a thousand euros on a professional property lawyer to review your contract can save you from tens or even hundreds of thousands of euros in losses down the road. This is money you absolutely should not skimp on. I hope everyone’s home-buying journey goes smoothly! Feel free to leave a comment below if you have any questions.
