Contrato de arras vs Contrato de reserva

If you are looking for a home or other property in Spain, you will probably come across the terms “contrato de arras” and “contrato de reserva”. Both terms refer to legal documents that are often used when purchasing property in Spain. Below we explain what these documents entail and what the differences are between contrato de arras and contrato de reserva.

What is a contrato de arras?

A contrato de arras is a provisional purchase agreement drawn up between the seller and the buyer of a home or other property. The purpose of this agreement is to confirm the sale of the property and to ensure that both parties adhere to the agreed terms.

The following matters are included in the contrato de arras:

• • The identity of the seller and the buyer
  • The description of the property being sold
  • The sales price and payment terms
  • The date of the transfer of the property
  • The conditions for dissolving the agreement

After the contrato de arras has been signed, the buyer usually pays a deposit of about 10% of the sale price of the property. This deposit is considered a binding agreement and can only be returned in certain cases, such as when the seller does not meet the agreed terms.

What is a contrato de reserve?

A contrato de reserva is a document used to temporarily reserve a home or other property while the buyer arranges the details of the purchase. The purpose of this document is to prevent the property from being sold to someone else in the meantime.

A contrato de reserva usually includes the following matters:

• The identity of the seller and the buyer
• The description of the property being reserved
• The period of the reservation
• The payment for the reservation
• The conditions for canceling the reservation

The payment for the reservation is usually a small amount, which can vary from a few hundred euros to a few thousand euros. If the buyer decides to buy the property, the amount of the reservation is usually deducted from the final purchase price.

What are the differences between contrato de arras and contrato de reserva?

Although contrato de arras and contrato de reserva are both legal documents used when purchasing property in Spain, there are some important differences between the two. The main difference is that the contrato de arras is a binding agreement between the buyer and the seller, while the contrato de reserva is just a temporary reservation.

Another difference between the two documents is the amount to be paid. A contrato de arras usually requires the buyer to pay a down payment of around 10% of the sale price of the property, while a contrato de reserva only requires a small amount to be paid for the reservation.

It is also important to note that the conditions for terminating the contract differ between the two documents. In a contrato de arras, the contract can only be dissolved if one of the parties fails to meet the agreed conditions, while in a contrato de reserva, the reservation can be canceled if the buyer decides not to buy the property.

Conclusion

If you are planning to buy property in Spain, it is important to know the differences between the contrato de arras and the contrato de reserva. Both documents are important during the purchasing process and it is crucial to be well informed about their content and conditions.

A contrato de arras is a binding agreement between the buyer and the seller, usually requiring the buyer to pay a deposit of 10% of the sale price. A contrato de reserva is only a temporary reservation, usually requiring the purchaser only a small amount

to pay for the reservation. Both documents are important to make the purchase process run smoothly and to ensure that the buyer and seller adhere to the agreed terms