Second Hand
Properties

The "Arras Agreement". Reservation of your second hand property.

Imagine you are willing to purchase a property in Spain but you need some more time to assemble the money, or even to obtain the mortgage to pay it; what you can do in that case is make a reservation of the property by signing an “arras agreement”.

When you sign this kind of agreement, you are putting down a deposit to keep the property, the other side of the coin is that you will lose it if you don not complete the sale on the date stated, or that the vendor shall return double the amount deposited, was he finally not to honour the contract in the stated date.

This deposit should not take part of the total purchase price, but it is the price that the buyer gives to the seller for paying the purchase option, since the seller could demand the full amount of the purchasing price in case the deposit took part of it and we renounced to buying the house.