If you are buying a property in Spain, understanding the difference between a reservation contract and an arras contract is absolutely essential.

A reservation contract is the first step. It takes the property off the market for an agreed period while legal checks are carried out. It’s typically a smaller deposit and offers limited legal protection—its main purpose is to secure the property while both parties move towards the next stage.

An arras contract (contrato de arras) is far more legally binding. At this stage, a larger deposit is paid (usually around 10%), and both buyer and seller are committed. If the buyer pulls out, they lose their deposit. If the seller withdraws, they must return double the amount—making it a critical milestone in the purchase process.

Understanding these two contracts can save you time, stress, and potentially thousands of euros when buying property in Spain.