Arras contract in Spain
Making the decision to purchase a home or property in Spain is one that warrants a great deal of consideration and thought. Once this conclusion has been made, it is time to reserve your property, make the down payment and sign the Down Payment Contract or (Arras contract). Lusa Legal’s group of law professionals can assist you in establishing the terms of your Arras contract in Spain and making your down payment deposit. We are always available to answer your questions and address your concerns, and we make it our primary goal to ensure that you have all the information that you require on purchasing a property in Spain and on the required deposit agreement Barcelona.
What is the Arras Contract in Spain?
The Arras (or Down Payment) contract is a contractual agreement that is made between the buyer and seller of a specific property that acts as protection to the buyer that the property won’t be sold to someone else (or pulled off of the market altogether) and acts as a guarantee for the seller that the sale will go through. It binds both parties to the deal and neither can back out without paying a strict penalty.
General Contract Terms in Spain
Although each contract may be slightly different, depending upon each individual situation, generally the Arras contracts Barcelona is made up of 2 main parts that must be agreed upon:
- The down payment amount: This amount is decided upon between the buyer, seller and their legal representation. The usual amount is 10% of the purchase price although this can be negotiated.
- The penalty clause: This clause states that if the buyer, for any reason, backs out of the deal, the deposit amount will be lost and will be kept by the seller. It also states that if the seller chooses to terminate the agreement or sells the property to someone else, they must pay back double the deposit amount to the buyer.
What do you need to know before signing the arras contract in Spain
Prior to signing the deposit agreement Spain, it is important to ensure that the property you are interested in purchasing is the right property for you. Make sure that you and your legal team have completed the entire due diligence process and everything checks out as it should. Also make sure that you are comfortable and confident with your decision; once the Arras agreement is signed you are legally bound to purchasing the property or paying the strict penalty as outlined in the terms of the contract.
What happens after signing the arras contract in Spain?
Immediately after both parties have signed the down payment Barcelona contract, the buyer will have to pay the agreed upon deposit amount to the seller or in some cases, the seller’s agent. The property will then be held in their name until the final contract is signed, purchase amount is paid and the title and ownership is transferred over.
Determining the Arras contract terms and signing the contract documents is an important step in the purchase of a property in Spain. Signing the Down Payment contract in Spain will protect you from losing the property to someone else and binds both parties to the deal. Due to the fact that this contract usually contains strict penalties for anyone who breaks it, it offers a good guarantee that the sale will proceed as expected and in no time you will be a property owner in Spain. Lusa Legal is a team of international lawyers who specialize in Real Estate law in Barcelona. Our group of professionals can assist you in drafting a copy of your Arras contract and can answer any questions and aid in any problems that you may have regarding real estate in Spain. Contact us today: +34 605 33 60 90.