Before you pay that deposit: What property buyers in Spain often miss

A couple of expats recently came to us after falling in love with a townhouse near Denia. The realtor was pushing for a quick decision, and within days they had signed a reservation contract and transferred a deposit, eager not to lose the property to another buyer. It was only afterwards, once we began reviewing the paperwork, that a series of issues came to light: an unresolved boundary dispute, potential problems with the occupation license, some constructions that were not properly registered, etc. By then, the couple were legally tied into an agreement they no longer felt entirely comfortable with.

This scenario is far more common than most people realise. In Spain, unlike in many other countries, it is often the seller (or the estate agency acting for them) who holds the deposit once a reservation or “arras contract” is signed. There may be no independent third party safeguarding those funds until completion (as happens in the UK) and no automatic cooling-off period once the document has been signed (as is common sometimes in France). By the time doubts appear, it can already be too late to simply change your mind.

What often catches buyers off guard is how binding these early agreements can be. A reservation contract might look like a simple formality: a name, an address, a price, a signature. However, in practice, it can already commit both sides to the sale. And walking away is not always as simple as losing the deposit and moving on. Depending on the wording used in the contract, a seller could (on paper) insist on the sale going ahead rather than accepting compensation instead.

So, what could buyers do differently?

Perhaps the single most useful step is also the simplest: avoid signing, and avoid paying, before a lawyer has looked at the situation. Land registry and Cadastral checks, outstanding charges, urban planning status, community debts… these things take a little time, but they can (and they should) be done before any money changes hands, not after. Where a seller seems unwilling to allow that time or accept the contract to be conditioned to these checks being positive… it may well be worth asking why.

A rushed signature is rarely worth the risk it can create. If you are considering a purchase in Spain and would like some peace of mind before committing any money, our team would be glad to help. Reach out to us today.

You may be interested in the following services and articles:

Purchase Contract Termination. New Court Success. Property Purchase in Spain.

New Court Success. Termination of a sale contract. Our clients receive €69,500 as compensation.

Certificate of Habitability or Occupancy Licence. Conveyancing in Spain.

Carlos Baos (Lawyer)

White & Baos.

Tel: +34 966 426 185

E-mail: info@white-baos.com

White & Baos 2026 – All Rights Reserved.