Reservation contracts and arras in Spain: when the buyer's money is at risk

A reservation, private contract and arras may look like ‘just a way to take the property off the market’, but signing and transferring money create obligations. The risk is determined not by the file name but by the exact wording: who pays, for which property, what has already been checked and under what conditions the money is refunded.

Rules checked on 23 October 2026. The consequences of a specific contract are assessed according to its wording and the applicable law.

Reserva and arras are not interchangeable labels

A ‘reserva’ document is often used to temporarily stop marketing a property, but that name does not carry a single automatic refund regime. Arras is a term of a purchase contract whose consequences also depend on the wording. Do not treat an agent's verbal explanation as the content of the agreement.

When the ‘forfeit or repay double’ rule applies

Article 1454 of the Código Civil provides the option to withdraw from a sale where arras have been agreed: the buyer forfeits the amount paid, while the seller repays twice that amount. However, judicial and registration materials stress the need to classify the clause correctly; not every advance payment is automatically arras penitenciales. Check the current text of Article 1454 of the Código Civil.

Some autonomous communities have their own civil law provisions. For example, Catalan rules expressly distinguish confirmatory arras from arras penitenciales. A template from another transaction or region must therefore not be used without review.

What must be checked before payment

• The identity and authority of the seller and the recipient of the money.
• The exact finca, including parking, a storage room and included items.
• The registered owner, mortgage, attachments and other encumbrances.
• The price, payment schedule, deadline for signing before the notary and allocation of costs.
• Comunidad and IBI debts, tenants and the actual transfer of possession.
• The results the buyer requires from legal and technical due diligence.

The official government portal recommends checking the property's characteristics, owner and encumbrances through the Registro de la Propiedad before purchase: information about notaries and the register.

If the purchase depends on a mortgage

Preliminary approval or a manager's calculation does not guarantee that the loan or required amount will be granted. The contract must describe verifiable conditions: the deadline for obtaining a decision, the minimum financing required, acceptable evidence of refusal and the consequences for the payment. A general phrase such as ‘if the bank refuses’ may not cover a low valuation or approval of a smaller amount.

Payment for a new build

For advance payments on a home under construction, separately check the guarantee mechanism and special account. Do not call an advertising letter a bank guarantee if it does not identify the amount, buyer, property and guarantor. The developer's obligations to protect advance payments are established in the first additional provision of Ley 38/1999.

Minimum contract terms

1. The parties and the signatories' authority.
2. An unambiguous description of the property and appurtenances.
3. The price, purpose of each payment and recipient.
4. The legal nature of the payment and the precise consequences of breach or withdrawal.
5. Conditions for checking the property and obtaining financing.
6. The deadline for signing before the notary, key handover and included items.
7. The method of notification and dispute resolution.

Do not transfer money to a new account solely on the basis of a message in a messaging app: recheck the account details through an independent channel and retain the contract and payment confirmations.

Practical next step

Before signing, give the draft to an independent lawyer together with the Nota Simple, the seller's documents and mortgage terms. For a systematic review, use the 12-point legal due diligence checklist. Laverna can coordinate documents for the chosen property, but should not promise a payment refund without analysing the signed contract.

How to describe the property and payment unambiguously

The contract must consistently identify the parties, registration details, address, anexos, price, amount already paid and how it is credited towards the price. List furniture and equipment separately if they are material. Specify the payment recipient and the basis of their authority, especially when an agent or representative receives the money. A bank receipt confirms the transfer but does not remedy an unclear contract.

Conditions that turn risk into a verifiable decision

• Mortgage: the amount and deadline for obtaining a decision, the buyer's documents and the consequences of the bank's refusal.
• Legal due diligence: the specific documents or defects that entitle the buyer to withdraw, and the notification deadline.
• Vacating the property: the date, absence of occupants and key handover procedure.
• Encumbrances and debts: who confirms discharge, when, and with what evidence.
• Failure to meet the deadline: the consequences for each party, not just the buyer.

Do not use a template from another transaction without review: the nature of a payment is determined by the content of the agreement and the applicable rule, not merely by the word reserva or arras in the heading. Before transferring funds, obtain a signed copy and an independent explanation of the consequences of each scenario.

Red flags before transferring funds

Stop if the payment recipient differs from the seller and cannot show authority; the property is described only by its advertised address; the payment is declared non-refundable before documents are provided; a mortgage clause is absent despite the purchase depending on a loan; or the review period is shorter than the time realistically needed to obtain extracts. Pressure to ‘sign today’ is not a legal basis. Record the missing documents and resume the process after an independent review.

If the document is signed in two languages, specify which version prevails in the event of discrepancies and check the translation of material terms. The list of annexes must be definitive and the annexes actually attached: a plan, inventory, extracts and bank terms cannot be replaced by a statement that they ‘will be provided later’. Retain proof of delivery of notices and the addresses used for the parties.

The review date is essential.