The arras contract in Spain is a legal figure capable of providing interesting advantages to home buyers and sellers on the Costa del Sol. All you need to squeeze the most out of their benefits is contact with our team of polyglot lawyers in Marbella.
The arras contract is a private agreement in which one party gives another an amount of money as an advance on the future acquisition of a movable or immovable property.
- The future buyer agrees to acquire the property before the date indicated in the contract.
- The owner of the property is obliged to reserve it to the future buyer until that date. Therefore, during that period of time you will not be able to try to sell it to third parties.
The amount of money that the future buyer must deliver to the owner of the property is freely stipulated between the signing parties. However, as a general rule, this amount usually ranges between 10 and 20% of the total sale price. In the case of acquiring a new home, this percentage must include 10% VAT.
It may happen that, for any circumstance, the public deed of sale is not signed on the date set by the arras contract.
- If it is the fault of the buyer, he will lose the amount of money that he gave as a down payment.
- If the fault is the seller, he must deliver double the economic amount that he received as deposit.
If you have already paid the signal in accordance with the arras contract and decide that you do not want to go ahead with the sale, you can still recover the money delivered. The only reason you can argue for this is that the immovable had hidden defects.