Reservation Contract vs Arras Contract in Spain: What You Sign, What You Lose and How to Protect Yourself 13 Oct 2026

Quick answer: The reserva and the contrato de arras are two completely different documents with very different legal and financial consequences. The reserva is a preliminary agreement that typically involves a deposit of €3,000–€6,000 to take the property off the market while you complete due diligence. The arras penitenciales contract — the most common type — requires a deposit of 10% of the purchase price and has fixed statutory consequences: if you withdraw, you lose the 10%; if the seller withdraws, they must return double. Signing an arras contract without having your lawyer review it first is one of the most expensive mistakes buyers make on Costa Blanca.

Why understanding the difference matters

The Spanish property purchase process involves three key documents: the reserva, the arras contract and the notarial public deed. Each carries a different level of commitment, and the first two are frequently confused — even by experienced buyers.

The practical problem: a document titled "reserva" can have the legal structure of an arras contract. What matters is not the document's title — it is the content. If the document references "arras penitenciales" or Article 1454 of the Spanish Civil Code, it carries fixed legal consequences regardless of what it is called.

The reserva: first step, limited commitment

The reserva (contrato de reserva or señal de reserva) is a preliminary agreement that takes the property off the market for a fixed period — typically 7 to 30 days — while the buyer completes legal checks and organises financing.

Typical amount: €3,000–€10,000 (varies by property price and agency).

What it covers: Reserves the property for you during the agreed period. During that time the seller cannot show or sell the property to another buyer.

If you withdraw: Depends on the contract. Many reservas are partially or fully refundable — especially if the property has legal issues. Read the contract before paying.

If the seller withdraws: Must return the deposit, sometimes with a penalty.

What the reserva is NOT: It is not a binding purchase commitment. It does not oblige you to complete the transaction if the property has charges, planning issues or unclear title.

The arras contract: the real commitment

The contrato de arras penitenciales — governed by Article 1454 of the Spanish Civil Code — is the contract that converts the verbal agreement into a legally binding bilateral commitment with fixed financial consequences.

Typical amount: 10% of the agreed purchase price, less any reserva deposit already paid.

For example: on a €200,000 property, the arras deposit is €20,000. If you already paid €5,000 as a reserva, you pay a further €15,000 on signing the arras.

The three fixed consequences of arras penitenciales

These consequences are set by law — they are not negotiable once the contract is signed and the document explicitly references Article 1454.

The three types of arras

There are three types of arras contract in Spain, and the most common is not the only one:

Arras penitenciales (Art. 1454 CC): The most common. The party that withdraws pays the price of withdrawal — buyer loses deposit, seller returns double. No further damages can be claimed by either party. This version allows either party to walk away by paying the withdrawal price.

Arras confirmatorias: These do not carry the automatic Article 1454 regime. If one party defaults, the other can demand contract performance or claim full damages and losses. More binding than penitenciales.

Arras penales: A hybrid. Withdrawal means losing the deposit AND possible additional damage claims on top. Less common in residential transactions.

The question your lawyer must answer before you sign: Does this contract explicitly say "arras penitenciales" and cite Article 1454 of the Civil Code? If not, the consequences may be more serious than expected.

The complete process: from reserva to notary

In a standard transaction on Costa Blanca, the sequence runs like this:

1. Verbal price agreement
Buyer and seller (usually through the agency) agree on a price and basic conditions.

2. Reserva
The buyer pays €3,000–€6,000 to take the property off the market. The buyer's lawyer begins due diligence: Land Registry nota simple, planning status, community debts, outstanding IBI, habitability certificate.
Duration: 7–30 days.

3. Arras contract
Once due diligence is satisfactorily completed, the arras contract is signed and the buyer pays 10% of the price (minus the reserva already paid). Both parties are now legally committed.

4. Notary
The buyer pays the outstanding balance (90% of the price), the public notarial deed is signed, possession is handed over and the property is registered in the Land Registry in the buyer's name.

Typical time from reserva to notary: 6–12 weeks for cash buyers; 8–16 weeks with a mortgage.

The most common mistakes and how to avoid them

1. Paying a reserva without a written contract

Any money you hand over must be covered by a signed written contract specifying refund conditions. A verbal agreement or a bank transfer without a signed document gives you no protection if a problem arises.

2. Signing arras before legal checks are complete

Arras should only be signed once you have the nota simple and have verified the property has no charges, debts or planning problems. Signing before that check is complete can cost you the full 10% deposit if a problem later emerges.

3. Confusing the type of arras

A document titled "private purchase contract" can function as arras confirmatorias — meaning if you withdraw, the seller can demand contract performance rather than simply keeping the deposit. Always check what type of arras you are signing.

4. Not verifying where the deposit is held

In Costa Blanca transactions, deposits are typically held in the agency's or lawyer's client account. Always ask how and where the money is held before transferring it.

5. Miscalculating the cash available on completion day

On the day of the notary signing you need to have available: the purchase price minus the arras deposit, plus buying costs (ITP 9% + notary + registry + admin = approximately 10–11% of the price). A €180,000 apartment requires roughly €197,000–€200,000 in total available funds.

What to have ready before the reserva

To make the process run cleanly from the first payment:

• NIE (Número de Identificación de Extranjero) — essential for signing at the notary. Obtaining it takes time; apply before you start searching.

• Spanish bank account — needed for the transaction and to set up direct debits for property running costs.

• Independent lawyer — not the agency's lawyer. Your lawyer reviews the reserva contract, conducts due diligence and reviews the arras before you sign anything.

• Confirmed financing — if buying with a mortgage, confirm bank pre-approval before signing arras. If the bank rejects the mortgage after arras are signed, you may lose the deposit unless the contract contains a specific mortgage condition clause (condición suspensiva).

What the nota simple tells you

The nota simple is the Land Registry extract your lawyer requests as the first step of due diligence. It confirms:

• Who the legal owner is (and whether it matches the seller)

• Any mortgages or charges registered against the property

• Any embargos or legal disputes

• The cadastral reference and registered surface area

• Any rights of way or easements

Buying a property without checking the nota simple first is the single biggest risk in the Spanish purchase process.

Next steps

The Naranja Spain team works with buyers across Costa Blanca South — Torrevieja, Guardamar del Segura, Orihuela Costa. Browse properties in Torrevieja and properties in Guardamar del Segura, or contact us directly.

For the full breakdown of buying costs — ITP, notary, registry — read our guide on the true cost of buying property in Spain.

Frequently asked questions

Can I withdraw after signing the reserva?
It depends on the contract. Many reservas are partially refundable — especially if the property has legal issues. Read the reserva contract before paying and ask explicitly what conditions allow a full or partial refund.

How long do I have between reserva and arras?
Typically 7 to 30 days. During that period your lawyer conducts due diligence. If due diligence cannot be completed within that timeframe, it is possible to request an extension.

Can I sign arras before having a NIE?
Yes — the NIE is required for the notary signing, not the arras. However, if you do not have a NIE by the time of the notary appointment, you may need to extend the contract deadline.

Is it mandatory to have a lawyer when buying property in Spain?
Not required by law. But skipping independent legal review is one of the most expensive risks in the process. An independent lawyer who reviews the nota simple, the reserva and the arras costs €1,000–€1,500 — and can prevent problems many times that value.

Does the agency hold the arras deposit?
It depends on the transaction. In some cases the deposit goes directly to the seller; in others it is held by the agency or one party's lawyer in an escrow or client account. Confirm this before signing.

This article is for informational purposes only and does not constitute legal advice. Always consult a qualified Spanish lawyer before signing any property contract.