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Signing a Contract & Reservation in Andalucía: Laws & Procedures for Sellers and Agents


A Practical Guide for Estate Agents & Sellers


Selling property in Southern Spain involves a structured legal process. Understanding the reservation agreement, deposit structure, and contractual obligations is essential to protect both seller and agent.


This guide outlines the standard procedure followed in Andalucía.


Overview of the Sales Timeline in Andalucía

The typical property sale process includes:

  1. Offer accepted
  2. Reservation agreement signed
  3. Deposit paid
  4. Private purchase contract (Contrato de Arras)
  5. Legal checks & mortgage arrangements
  6. Completion at Notary (Escritura Pública)


While variations exist, this sequence is standard across most transactions.


Step 1: Reservation Agreement (Contrato de Reserva)


What Is It?

A reservation agreement removes the property from the market for a specified period while legal checks are conducted.

Typical Features:

  • Buyer pays a small deposit (usually €3,000–€10,000)
  • Property is withdrawn from advertising
  • Timeframe agreed (usually 7–14 days)
  • Basic terms of sale recorded

Important Notes for Sellers & Agents:

  • Ensure clear wording on refund conditions
  • State what happens if buyer withdraws
  • Confirm how deposit is held (agency account or lawyer escrow)


This document is usually not legally binding in the same way as the arras contract — it mainly secures intent.


Step 2: Private Purchase Contract (Contrato de Arras)

This is the most important pre-completion contract.

There are three types of arras under Spanish law, but the most common in Andalucía is:


Arras Penitenciales (Article 1454 Civil Code)

Key features:

  • Buyer typically pays 10% deposit
  • If buyer withdraws → deposit is forfeited
  • If seller withdraws → seller must return double the deposit


This creates financial security for both parties.


What Should Be Included:

  • Full legal details of buyer and seller
  • Property description (as per Title Deed)
  • Agreed purchase price
  • Completion date
  • Fixtures and fittings list
  • Distribution of costs


For agents, ensuring clarity here avoids disputes later.


Before completion, the buyer’s lawyer will typically verify:

  • Title deed (Escritura)
  • Land Registry status (Nota Simple)
  • Debts or charges
  • Community fees status
  • IBI (local property tax)
  • Utility payments
  • Planning compliance (especially for rural property)


Sellers should prepare documentation early to avoid delays.


Step 4: Signing at the Notary (Escritura Pública)

Completion occurs before a Spanish Notary.

At this stage:

  • Remaining balance is paid
  • Title deed is signed
  • Keys are handed over
  • Ownership transfers
  • Taxes are triggered


The notary ensures legality but does not act as either party’s legal advisor.


After signing, the deed is registered at the Land Registry.


Understanding deposit consequences is critical:

If Buyer Defaults:

Under arras penitenciales → seller keeps deposit

If Seller Defaults:

Seller must return double deposit

Mortgage Is Refused:

Unless a mortgage clause is included, the buyer may lose the deposit.


Agents should always encourage both parties to seek independent legal advice before signing.


Common Mistakes to Avoid

  • Accepting vague verbal agreements
  • Not verifying property charges before marketing
  • Failing to specify completion deadlines
  • Not clarifying furniture inclusions
  • Poor translation of contracts for foreign buyers
  • Holding deposits without proper written agreement


Best Practices for Estate Agents

✔ Use standardised reservation templates

✔ Confirm deposit handling procedure in writing

✔ Encourage independent lawyers for both parties

✔ Keep written records of all offers and counteroffers

✔ Avoid giving legal advice beyond your role

✔ Set realistic completion timelines


Professional documentation builds trust and reduces post-offer fall-through rates.


Special Considerations in Andalucía


In some areas of Andalucía, especially rural properties:

  • Planning compliance checks are critical
  • AFO (Asimilado Fuera de Ordenación) status may apply
  • Land classification issues can affect mortgage approval


Agents operating in the region should be particularly careful with country properties.




Legal Disclaimer


This guide provides general information on the sales process in Andalucía and does not constitute legal advice. Property law and contract structures may vary depending on circumstances. Sellers and buyers should seek independent legal counsel before signing any binding agreement.