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What is Arras in Spain?

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What is Arras?

The Arras Agreement (Spanish: contrato de Arras) in Spain is a deposit agreement for the purchase of housing and other real estate.

Arras guarantees and secures the rights of the buyer and seller of real estate in Spain: that is, the buyer pays a deposit for housing and contracts an obligation to buy it, and the seller secures the buyer's exclusive right to buy. In addition, Arras is the future structure of the Purchase and sale deed of the apartment, so you should be especially careful when signing it.

Arras contract types

Spanish law provides for the existence of three types of Arras contract:

  • arras penales o de garantia;
  • arras confirmatorias;
  • arras penitenciales o de desistimiento.

Important: only the last type of contract (arras penitenciales) ensures the return to the buyer of the amount of the deposit paid in double in case of cancellation of the transaction. Other types of contracts ensure the return of the paid deposit (arras confirmatorias) or the possibility of forcing the seller to conduct the transaction through the courts (arras penales).

When signing the Arras contract, it should be clearly indicated in the text of the contract which type of contact is chosen for the transaction.

Contents of the Arras contract

When signing the Arras agreement, focus your attention on the point about the performance of all systems and residential communications, the absence of encumbrances, the presence or absence of debts and rental obligations (housing is sold without occupiers and tenant waiting periods). Your future home must be fully livable.

What else is indicated in the Arras Agreement?

  • Complete details of both the seller and the buyer: names and surnames, addresses, passport data, DNI or NIE;
  • Complete information about the object of sale, including its address and various characteristics, cadastral number of housing, etc.;
  • Information about the form of payment for the agreement, the amount of the deposit and the type of its payment, the exact date by which the parties are obliged to conclude the transaction;
  • Information about encumbrances and debts (preferably - their absence) on the object - as mentioned above

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