Legal Checklist Before Paying a Property Deposit in Spain

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Buyer Protection · Practical Checklist

Legal Checklist Before Paying a Property Deposit in Spain

The essential documents, contract protections and payment checks an international buyer should address before transferring a reservation fee or arras deposit.

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A deposit can create binding obligations. Do not assume that every reservation payment is automatically refundable. The wording of the document and the type of deposit determine the consequences.

Before transferring any money

  • Appoint an independent Spanish property lawyer.
  • Confirm the identity of the registered owner and their authority to sell.
  • Obtain an up-to-date Nota Simple from the Land Registry.
  • Check mortgages, attachments, easements and other registered charges.
  • Compare the Registry, Cadastre and physical description.
  • Investigate the planning status of the dwelling, extensions, terraces and pool.
  • Confirm whether the property is occupied, rented or subject to third-party rights.
  • Review outstanding IBI, community fees and special assessments.
  • Agree exactly when the deposit is refundable and non-refundable.
  • Verify the recipient bank account independently before payment.

Reservation deposit versus contrato de arras

A reservation agreement commonly removes the property from the market for a limited period while initial checks are carried out. A contrato de arras is normally a more developed private agreement and may have significant withdrawal consequences. The legal effect depends on the drafting, not merely the heading of the document.

Do not rely on a verbal statement that a payment is “fully refundable”. The contract should identify the specific conditions, deadlines and repayment mechanism in writing. Learn more in our guide to the contrato de arras.

Protections to include in the agreement

Depending on the transaction, your lawyer may recommend making the agreement conditional on matters such as:

  • Satisfactory legal and planning due diligence.
  • Mortgage approval where financing is essential.
  • Cancellation of the seller’s mortgage and registered charges.
  • Evidence that taxes and community fees are current.
  • Regularisation or express treatment of unregistered building work.
  • Vacant possession at completion.
  • Delivery of specific licences or occupancy documentation.
  • An agreed inventory for furniture and equipment.
  • A clear completion date and consequences of delay or default.

Who should receive the deposit?

The agreement must identify the recipient and the legal basis on which the money is held. Before transferring funds, independently confirm the bank details using a trusted contact method. Email-account fraud and substituted payment instructions are risks in high-value transactions.

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Payment safety: never change bank details solely because of an email. Confirm them by telephone using a number obtained independently, and ask your lawyer what client-account or stakeholder protections apply.

Documents your lawyer may request

Document Why it matters
Nota Simple Shows registered ownership and charges.
Cadastral certificate Helps compare the physical and tax description.
IBI receipt Identifies the property for municipal tax and indicates payment status.
Community certificate Confirms debts and may reveal approved special assessments.
Planning and building records Help establish whether construction and alterations are legally authorised.
Occupancy documentation Relevant to lawful occupation, services and local requirements.
Energy certificate Generally required in residential sale transactions, subject to exceptions.
Seller identification and authority Confirms who is entitled to enter into the agreement.

Questions to answer before signing

  1. What exactly secures the property and for how long?
  2. Is the payment refundable if legal or planning defects are found?
  3. What happens if the mortgage is refused?
  4. What happens if the seller withdraws?
  5. What happens if the buyer cannot complete?
  6. Which fixtures, furniture or licences are included?
  7. Who holds the money pending completion?
  8. Which law and court jurisdiction apply?

Have the agreement reviewed before you pay

Connect with an English-speaking property lawyer who can review the documents, investigate the property and explain your exposure in writing.

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Frequently asked questions

Is a reservation deposit always refundable?

No. Refundability depends on the contract wording and the circumstances. The agreement should clearly state the conditions under which the money will be returned or retained.

Is ten per cent always required?

No universal rule requires every buyer to pay the same percentage at the same stage. The amount and timing are negotiated, although a larger payment is commonly associated with the private purchase agreement.

Can I sign electronically from abroad?

In many cases documents can be signed remotely, but the form, identity checks and authority required depend on the document and transaction. Your lawyer should confirm the appropriate method.

Should I pay before due diligence is complete?

Ideally the key checks should be completed first. If commercial circumstances require an earlier reservation, the written agreement should contain protections approved by your independent lawyer.

Legal disclaimer: General information only; it is not a substitute for advice on a particular property or contract. Obtain independent Spanish legal advice before signing or transferring money.

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