Buying a home is a significant decision that entails various procedures and financial commitments. One of the documents typically signed before formalizing the sale before a notary is a deposit agreement (*contrato de arras*).
This agreement makes it possible to establish the terms of the transaction and define the commitments between the buyer and the seller.
However, before signing it, it is essential to understand its characteristics and the consequences that may arise from a failure to comply with its terms.
At Procasa, as a real estate agency in Roses and Empuriabrava, we guide our clients throughout the buying and selling process, ensuring they can make decisions based on clear and sufficient information.
What is an *arras* (earnest money) agreement?
An *arras* agreement is a contract in which a buyer and a seller establish specific conditions for the future sale of a property.
Typically, the buyer provides a sum of money, which is then credited toward the total purchase price of the property.
The document generally specifies the agreed-upon price, the amount paid, the deadline for finalizing the transaction, and other important terms.
This is a standard step when purchasing apartments, houses, and other types of property in Roses, Empuriabrava, and throughout the Costa Brava.
What types of *arras* agreements exist in Catalonia?
Not all *arras* agreements carry the same legal consequences.
In Catalonia, the Civil Code distinguishes, in particular, between *arras confirmatorias* (confirmatory earnest money) and *arras penitenciales* (penitential earnest money).
*Arras confirmatorias* (Confirmatory earnest money): These serve as evidence that a contract has been entered into and act as a partial payment toward the total price. They do not, in themselves, grant a right to freely withdraw from the transaction.
*Arras penitenciales* (Penitential earnest money): These allow for withdrawal from the agreement under the conditions stipulated. As a general rule, if the buyer chooses to withdraw, they forfeit the amount already paid.
If it is the seller who withdraws, they must return double the amount, subject to any legally applicable exceptions.
It is important that “penitential” earnest money (*arras penitenciales*) be expressly agreed upon, as the payment of money is, by default, considered merely a confirmation of the agreement.
What should an earnest money agreement include?
Before signing, we recommend verifying that the document accurately reflects the essential aspects of the transaction.
These include, most notably:
- Identification of the buyer and seller.
- Description of the home and its registration data.
- Total purchase price.
- Amount delivered as a deposit.
- Expected deadline to sign before a notary.
- Conditions relating to charges, financing and delivery of the property.
- Consequences of non-compliance or withdrawal.
Clear wording helps prevent misunderstandings and subsequent conflicts.
What happens if the bank does not grant the mortgage?
One of the main concerns of buyers is what happens if they sign a deposit contract and subsequently do not obtain financing.
In Catalonia, the Civil Code contemplates specific regulation for operations in which the contract provides for financing by a credit institution.
In certain cases, if the entity rejects the financing and the legal requirements are met, the buyer can withdraw without losing the amounts delivered.
For this reason, we recommend paying special attention to the financing conditions before signing and checking what documentation will be necessary to prove a possible denial.
What should be checked before signing?
In addition to the content of the contract, it is important to verify the legal and documentary status of the property.
We recommend checking the ownership of the property, possible registration charges, available documentation and delivery conditions.
It is also advisable to be clear about the expenses associated with the sale and the planned schedule to formalize the operation.
In areas such as Roses and Empuriabrava, where many properties are purchased as second homes, it is especially important to correctly coordinate the deadlines when buyers or sellers reside outside of Spain.
Buy your home with the advice of Procasa
Signing a deposit contract is an important step in any real estate transaction. Knowing its conditions and consequences allows you to face the purchase and sale with greater peace of mind.
At Procasa we have extensive experience in buying and selling properties on the Costa Brava.
As real estate agency in Roses and Empuriabrava, we offer personalized advice to those who want to buy or sell apartments, houses, villas and other real estate properties.
Our team accompanies clients during the different phases of the operation, from searching for a home to formalizing the sale.
If you are thinking of buying a home in Roses, Empuriabrava or its surroundings, contact with Procasa. We will help you find a property adapted to your needs and we will accompany you during the purchase process.