Why buyers get caught out
An arras contract is binding. Under the usual penitential arras, if you withdraw for any reason the contract does not cover, you lose the deposit, typically around 10% of the price. Most contracts drafted by the seller's side contain no condition for the buyer's checks or mortgage.
What we look for in your contract
| Clause | The question | Typical fix |
|---|---|---|
| Type of arras | Can either party walk away, and at what cost? | Choose the type that matches your plan |
| Conditions | Is the deposit refundable if the checks or the mortgage fail? | Add due diligence and finance conditions |
| Property description | Does it match the registry, the Cadastre and reality? | Describe every unit, annex and parking space |
| Licences and debts | Does the seller guarantee licences and no debts? | Seller warranties and retentions |
| Completion date | Can you realistically meet it? | Date linked to NIE, mortgage and checks |
| Payment of the deposit | Who holds it and when is it released? | Clear instructions and a verified account |
| Non-resident seller | Is the 3% retention provided for? | Retention clause and certificates |
Reservation documents
Before the arras contract, many agents ask for a reservation fee to take the property off the market. The reservation document is short but it matters: it should state that the fee is refundable if the checks show a problem, how long the reservation lasts and whether the fee counts towards the price. We review it the same way. See reservation and arras contracts in Mallorca.
How the review works
- Send us the documents. The draft contract, the listing and any information the agent has given you, by email or WhatsApp.
- Registry check. We obtain the nota simple to confirm the owner and any mortgages, seizures or easements.
- Written review in English. What each clause means for you, what is missing and what we recommend changing.
- Negotiation. If you wish, we send the amendments to the agent or the seller's lawyer and agree the final text.
- Next steps. If you go ahead, we can continue with the full due diligence and the purchase.
When you have already signed
If you have already signed and paid, a review is still useful: we tell you what rights and deadlines you have, whether any condition allows you to withdraw and what to check before completion. If the seller does not comply, we explain your options to recover double the deposit or to demand completion. See private contract vs public deed.
Contracts for sellers
We also review arras contracts for sellers, to make sure the buyer's conditions are reasonable, the deposit is secure and the completion date is firm. See our seller service.
This service is provided by the property team of Castell.law in Palma, for properties in Mallorca, Menorca, Ibiza and Formentera. For the whole purchase, see our property purchase lawyer service.
Before you pay a deposit, ask a lawyer
Send us the listing or the document you have been asked to sign. An English-speaking property lawyer will tell you what needs checking and what it could cost you not to.
Questions about reviewing an arras contract
How quickly can you review an arras contract?
Usually within one or two working days. If the agent has given you a short deadline, tell us when you send the documents.
Can the agent refuse to change the contract?
The agent can say no, but most sellers accept reasonable conditions. If they refuse any protection, that is useful information before you pay.
Is my deposit lost if the mortgage is refused?
Only if the contract says nothing about it. With a finance condition, the deposit can be refunded if the bank refuses the loan.
Do I need the contract in English?
It is usually in Spanish or bilingual. We explain it in English and can ask for a bilingual version, making clear which language prevails.