Buying property in Spain is exciting — but many buyers do not realise how much financial risk can exist before the final purchase is completed.
One of the most common questions we receive from international buyers is:
“If I pay a deposit, can I lose it?”
In many cases, the answer is: Yes.
But everything depends on:
- the type of contract signed,
- the wording of the clauses,
- and whether legal protection was included before paying.
What is an “arras contract” in Spain?
In Spain, property purchases usually begin with an arras contract, article 1454 of the Spanish Civil Code.
This is a private agreement where the buyer pays a deposit to reserve the property before completion at the notary.
The most common type is:
Arras penitenciales
Under Spanish law:
-
If the buyer withdraws → the deposit may be lost
-
If the seller withdraws → the seller may have to return double the deposit
Many buyers are surprised to discover this after signing.
When can buyers lose their deposit?
This can happen if:
- financing is refused,
- deadlines are missed,
- the buyer changes their mind,
- or the contract does not include protective clauses.
This is why signing without legal advice can become extremely expensive.
Mistakes buyers often make
We frequently see buyers who:
❌ sign contracts too quickly
❌ assume deposits are always refundable
❌ rely only on the estate agent
❌ do not review penalties or financing clauses
Unfortunately, problems usually appear when it is already too late.
How to protect yourself
Before paying any deposit, you should:
✔ have the contract reviewed by an independent lawyer
✔ check financing protection clauses
✔ verify the legal status of the property
✔ understand exactly what happens if the transaction fails
A small legal review before signing can save thousands of euros later.
What if you have already signed?
Do not panic — but act quickly.
In some situations, the deposit may still be recoverable depending on:
- the wording of the contract,
- breaches by the seller,
- or legal defects affecting the property.
Every case is different.
Speak to a property lawyer before making a decision
At Bennet & Rey, we advise international buyers purchasing property in Spain.
We provide clear, strategic and practical legal advice before and after signing.
Book a consultation
Receive personalised legal advice regarding your purchase, deposit agreement or property transaction.
📩 [email protected]
📍 Madrid, Spain
