Answers for property owners
Arras contract: what the seller should know before signing it
The arras contract is the moment an offer becomes a commitment. What you sign here shapes the rest of the sale.
SHORT ANSWER
It is usual for the buyer to hand over around 10% of the price as arras. Unless otherwise stated, the Civil Code treats them as penitential: if the buyer pulls out, they lose what they paid; if the seller does, they return double. It is worth setting out in writing the type of arras, the deadline for signing, the conditions and who pays what.
IN THIS ARTICLE
Between the offer and the notarial deed there is a private contract that almost nobody reads calmly. These are the points a seller should not overlook.
What arras are and what they are for
Arras (a deposit paid under a private contract) are an amount the buyer hands to the seller on signing the private contract, as a sign of commitment to buy. That amount is deducted from the final price. It takes the home off the market for the agreed period and sets the conditions of the sale: price, deadline, status of charges and split of costs.
The three types of arras
Penitential
They allow either party to withdraw by paying. If the buyer pulls out, they lose the arras; if the seller does, they return double. This is what Article 1454 of the Civil Code applies if the contract says nothing else.
Confirmatory
They are simply a payment on account and confirm the contract. A party in breach faces a claim for forced performance or for damages.
Penal
They set compensation for breach, which is added to the claim for performance. They must be drafted precisely.
Which clauses to include
- The type of arras, written without ambiguity
- The amount and how it is paid (identifiable bank transfer)
- The deadline for signing the deed, and what happens if it is missed
- Who cancels the mortgage and when, if there is one
- That the property is delivered free of charges, or which ones remain
- Split of costs and taxes, including the plusvalía municipal (the municipal land-value tax)
- If the buyer is a non-resident, the 3% withholding at the signing
Badly drafted arras protect nobody. Ask your lawyer to review them before you sign, as a seller too.
Changing a single sentence can decide a case.
A reservation and arras are not the same
On the Costa del Sol a prior reservation, for a smaller amount, is common: it keeps the home off the market for a few days while the arras contract is prepared. The reservation does not replace the arras: it is a short agreement whose aim is to reach them. It is also signed privately, and it is worth writing down the deadline and what happens to the money if no agreement is reached.
After the arras: the road to the deed
Between the arras and the signing before the notary, the signing documents are prepared, charges are cancelled and, if the buyer is financing, the notarial mortgage procedure is completed. An arras contract with realistic dates avoids tension in that stretch.
Frequently asked questions
What amount is usually handed over as arras?
Around 10% of the sale price, although a different amount can be agreed.
What happens if the buyer pulls out?
If the arras are penitential, the seller keeps them. If they are confirmatory or penal, the seller can claim performance of the contract and damages.
And if I pull out as the seller?
With penitential arras, you return double what you received. That is why it is best not to sign arras until you are certain.
Are they signed before a notary?
They are normally a private contract. They can be raised to a public deed if the parties wish, which gives them more force against third parties.
Are taxes paid on receiving the arras?
The arras are deducted from the final price and are not taxed as a separate sale. The taxes on the sale are settled when the transaction closes.
About the author
Alfonso Lacruz
Naval engineer and market analyst. Over 25 years advising owners in Marbella and Benahavís. Publishes a monthly market analysis with Land Registry data.
Every case is different: before you sign or decide, confirm your situation with your own lawyer, notary or tax adviser.
Sources: Civil Code (Código Civil), Articles 1454 and following; Consejo General del Notariado (General Council of Notaries); Spanish Tax Agency. Last updated: 24 October 2026.
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