Reservation Contract vs Purchase Contract: What's the Difference?
Two deposits, two different documents — and an easy way to mix them up if nobody explains the difference upfront.
Buying a property in Spain typically involves two separate deposit stages, each tied to a different document — and because both involve handing over money before completion, it's easy to assume they're the same thing. They're not, and the difference matters for how much you stand to lose or gain if something changes your mind.
Stage one: the reservation agreement
The reservation agreement is usually the first step — a relatively small deposit that takes the property off the market while the buyer arranges financing, surveys and legal checks. How much is required, how long it holds the property, and whether it's refundable all depend entirely on what the specific document says, so it's worth reading it as carefully as any other contract rather than treating it as a formality.
Stage two: the purchase contract (contrato de arras)
Next comes the contrato de arras, which involves a significantly larger deposit — commonly negotiated, though one consumer organisation notes that going beyond roughly 10% of the price is uncommon in practice.
The type of arras changes everything
The type of arras specified in the contract determines what happens if either side backs out, and this is the detail that matters most:
Arras penitenciales (the most common type, under article 1454 of the Civil Code): if the buyer walks away, they lose the deposit; if the seller walks away, they must return it doubled.
Arras penales: the penalty for backing out is whatever the specific contract states, rather than a fixed doubling.
Arras confirmatorias: neither side can simply walk away — either party can legally demand the sale actually be completed.
Questions worth asking before signing
Where exactly is the deposit held, and by whom? What happens if a deadline is missed, or if a mortgage application isn't approved in time? These are standard questions for a lawyer to answer before you sign either document, not after.
Frequently asked questions
What's the main practical difference between the two contracts?
The reservation agreement is an earlier, smaller deposit that takes a property off the market while checks are completed. The contrato de arras is a later, larger deposit, and the type of arras specified determines what happens financially if either side backs out.
What happens if I back out after signing a contrato de arras?
It depends on the type of arras in the contract. Under the most common type (arras penitenciales), the buyer loses the deposit if they back out, while a seller who backs out must return it doubled. Other types (penales, confirmatorias) work differently — always confirm which type applies before signing.
This article is general information, not tax or legal advice. Rules and rates can change — always confirm current figures with a qualified gestória or lawyer before relying on them.