Differences between arras, deposit and reservation contract
When a flat genuinely interests you, before the notary you'll sign one or several documents. Each has a very different legal meaning and confusing them can cost you money.
1. Reservation
The first document. Pulls the flat off the market while you review the registry note and apply for the mortgage.
- Typical amount: €1,000-3,000.
- If everything goes well → deducted from the price.
- If you back out → you lose the reservation.
- If the seller breaches → they return the reservation (no extra).
The reservation doesn't oblige you to buy if a serious problem appears (hidden liens, suspicious registry note). But if you simply change your mind, you lose it.
2. "Señal" (token deposit)
Confusing because the term doesn't exist as a standalone figure in the Civil Code. In practice it's used as a synonym for confirmatory arras: advance payment of the price with no withdrawal option.
If you sign a "señal" of €10,000 and back out, the seller can demand contract performance or damages. Less protective than penitential arras.
3. Arras penitenciales (Civil Code art. 1454)
The most common. A 1-2 page document where it's clear that:
- If the buyer breaches → loses the arras.
- If the seller breaches → returns double what was received.
Typical amount: 10% of the purchase price. Signed when you already have bank pre-approval and have reviewed the registry note.
4. Confirmatory arras
They look the same but are much stronger. They oblige both parties to perform come what may. There's no option to break the contract by paying an agreed indemnity: either party can demand specific performance.
Dangerous to sign confirmatorias if your mortgage isn't already 100% approved.
How to read the contract you're given
Look for these phrases:
- "The arras are delivered in accordance with art. 1454 of the Civil Code" → penitenciales. ✅
- "The parties undertake to elevate to public deed..." without mention of 1454 → usually confirmatory. ⚠️
- "As a token deposit (señal)" without more → confirmatory by default. ⚠️
A simple trick
Ask the contract to literally state:
"The arras delivered are penitential in accordance with art. 1454 of the Civil Code. The buyer may withdraw by losing them and the seller by returning them doubled."
With that clause you're covered. Without it, you're signing blind.