The Spanish Property Purchase Contract Explained

There is no cooling-off period in Spain. Once you sign a reservation agreement or a contrato de arras, you are committed. Getting independent legal advice before you sign either document is essential, not optional.

Step 1: The reservation agreement

The reservation agreement takes the property off the market while your lawyer carries out due diligence. The deposit is typically €3,000 to €10,000 for resale, deducted from the final price. It sets a deadline for the contrato de arras, usually 2 to 4 weeks.

Step 2: The contrato de arras

The contrato de arras firmly commits both buyer and seller. The buyer pays 10% of the purchase price (minus any reservation deposit already paid).

If the buyer withdraws

The deposit is forfeited in full. There are very few circumstances in which a buyer can recover it after signing.

If the seller withdraws

The seller must return double the deposit. This protects buyers from sellers who might otherwise accept a better offer after signing.

Due diligence before signing the arras

• Nota simple reviewConfirms ownership, mortgages, charges and legal encumbrances on the property.
• Community debt checkConfirms no outstanding community fees, which would transfer to the new owner.
• IBI and utility checksConfirms all municipal taxes and utility bills are paid and up to date.
• Planning and licence checkConfirms correct building licence and certificate of occupancy (cédula de habitabilidad).

Step 3: The escritura pública

The final notarial deed that legally transfers ownership. Both parties (or their representatives via poder notarial) attend the notary. The balance is paid, both sign, and keys are handed over. The notary submits the deed to the land registry, typically taking 2 to 4 weeks to complete.