Buying a property in Barcelona involves several important steps before receiving the keys to your new home. One of these is signing an arras contract, a common agreement in Spanish real estate transactions.
For international buyers unfamiliar with the Spanish property market, understanding this contract is essential before making a financial commitment.
What Is an Arras Contract?
An arras contract is a private agreement between a property buyer and seller, usually signed before the final purchase takes place at the notary.
The agreement establishes important conditions of the transaction, including the agreed purchase price, the deposit and the deadline for completing the sale.
The buyer generally pays a deposit, which is deducted from the final purchase price when the transaction is completed.
How Much Is the Deposit?
In Barcelona, an arras deposit is often around 10% of the agreed property price, although the exact percentage can be negotiated between the parties.
For example, if an apartment costs €350,000, a 10% deposit would amount to €35,000.
The remaining €315,000 would normally be paid when the final purchase is completed, excluding applicable taxes and additional costs.
This makes reviewing the agreement particularly important, as a substantial amount of money may be involved.
What Happens if the Buyer Changes Their Mind?
The consequences depend on the type of arras agreement signed.
One commonly used type in Catalonia is arras penitenciales, which allows either party to withdraw under the agreed legal conditions.
If the buyer decides not to proceed, they generally lose the deposit. If the seller withdraws, they must generally return twice the deposit received.
However, not every arras agreement works this way. Different types of deposits can create different legal obligations, making it important to understand the exact wording of the contract.
What if the Buyer Cannot Obtain a Mortgage?
Mortgage financing is another important consideration.
Under Catalan law, buyers may be entitled to withdraw and recover their deposit if the required financing is refused, provided the applicable legal conditions are satisfied and the contract does not validly exclude this protection.
Buyers should therefore clarify their financing situation and review the relevant contract terms before signing.
What Should Buyers Check Before Signing?
Before signing an arras contract, buyers should carefully review the property’s legal and practical circumstances.
Important considerations include:
- Ownership: Confirm that the seller legally owns the property.
- Outstanding debts: Check for registered mortgages, charges and relevant community debts.
- Building condition: Review available ITE documentation and information about planned renovations.
- Property documentation: Verify the registered details, surface area and habitability documentation.
- Payment conditions: Understand the deposit, deadlines and circumstances under which money may be refunded.
Taking these precautions can help reduce the risk of unexpected complications later in the transaction.
When Does the Final Purchase Take Place?
After signing the arras contract, both parties prepare for the final purchase.
This period allows time to arrange mortgage financing, complete documentation checks and organise the appointment with the notary.
At the notary, the parties sign the public deed of sale, known in Spanish as the escritura pública de compraventa.
The remaining purchase price is normally paid at this stage, and possession and keys are typically handed over as agreed.
Why Is This Important for International Buyers?
International buyers may be familiar with reservation agreements or property deposits in their home countries. However, Spanish and Catalan property transactions follow their own legal procedures.
Language barriers, unfamiliar documents and differences in contractual obligations can make the process more challenging.
Understanding the arras contract helps buyers make informed decisions, prepare their finances and avoid committing to conditions they do not fully understand.
How Harper Real Estate Can Help
At Harper Real Estate, we understand that buying property in Barcelona can involve unfamiliar procedures, particularly for international clients.
Our team helps buyers navigate the local property market, understand the different stages of the purchasing process and coordinate communication with the professionals involved.
Whether you are searching for a permanent residence, a second home or an investment property, having the right guidance can make the buying experience clearer and more manageable.
Thinking about buying property in Barcelona? Contact Harper Real Estate to explore available properties and take the next step towards finding your ideal home.
