This is one of the most important differences from France, and one of the least known. In France, a home buyer has a ten-day cooling-off period after signing the preliminary contract. In Spain, there is no such period: once the arras contract is signed, you are committed.
What happens if you pull out
It all depends on the type of arras in the contract. In the most common form, known as arras penitenciales, either party can walk away from the sale, but at a price:
- if the buyer withdraws, they lose the deposit paid, often 10% of the price;
- if the seller withdraws, they must pay back double the deposit.
Other forms of arras allow the injured party to demand that the sale goes ahead or claim damages. So the exact wording in the contract is no detail, as we explain in our article on the arras contract.
Conditions that protect you
A well-drafted contract can include conditions that let you walk away without losing the deposit, for example:
- your mortgage application being refused, if you are borrowing;
- the discovery of an undeclared debt, charge or planning problem;
- an essential document not being available by the agreed date.
These clauses are negotiated before signing, never after.
And by mutual agreement?
Buyer and seller can always agree together to cancel or change the deal. But nothing obliges the other party to accept, and it is not always in their interest to do so.
In Spain, caution belongs before the signing, not after. That is why we sign nothing without complete checks.
