You are about to sign the contract for your dream home in Spain. But do you really know what you are signing? Understanding the clauses in property purchase contracts in Spain is essential to avoid unpleasant surprises and protect both your interests and your investment.
In this guide, our English speaking Lawyers in Malaga Spain explain the most important clauses that every foreign buyer should carefully review before signing, helping to ensure a secure and hassle-free property purchase while avoiding common conveyancing mistakes in Spain that many buyers only discover too late.
Buying property in Spain involves more than just agreeing on a price, paying the seller, and receiving the keys. Spanish property contracts are legally binding documents that outline the full conditions, obligations, and rights of both parties involved in the transaction. A carefully drafted and reviewed contract provides peace of mind to both buyer and seller, preventing misunderstandings and disputes that could lead to the cancellation of the purchase.
For many international buyers, one of the biggest pitfalls of buying property in Spain is underestimating the importance of the contract stage. Relying on verbal promises, overlooking hidden debts, or failing to include essential clauses can result in costly problems later. This is why the contract is not just paperwork—it is the foundation that protects your rights and ensures the entire transaction is legally secure.
A well-written contract provides legal certainty for both sides. For the buyer, it guarantees delivery of the property as agreed: free from encumbrances and tenants, with taxes and utility bills paid, and in the agreed condition. If any charge exists, such as a mortgage, it must be cancelled before the sale. For the seller, it ensures payment of the agreed price on completion and protection against future claims.
In many transactions, the property is sold with furniture included. In these cases, an inventory—ideally, a photographic one—should be attached to the contract to avoid misunderstandings, as it forms a crucial part of the deal. Sometimes, buyers also request a property condition survey before signing, to confirm the state of the building and avoid surprises later.
When the property belongs to a homeowners’ association, the seller must prove that community fees are up to date. More importantly, it is vital to check whether there are any extraordinary charges (derrama), such as façade painting, lift installation, or significant works. These can be substantial and are often payable by the buyer upon completion of the purchase.
In Spain, every property sale must be formalised before a notary. After the private contract—which usually coincides with paying 10% of the purchase price—the sale is elevated to a public deed (escritura pública). The notary’s role includes verifying the identities of the parties, ensuring the property is properly registered, confirming ownership and the absence of debts or charges (handled by your lawyer), and guaranteeing the transaction adheres to Spanish law.
However, the notary remains neutral. They do not advise you on whether the contract terms are in your favour or negotiate clauses for you. Their role is to confirm that your lawyer’s prior work is in order. Your lawyer ensures that the contract reflects Spanish law and accurately reflects the agreement reached.
If a party cannot attend the notary, a power of attorney for buying property in Spain is often used. This legal document authorises your lawyer to sign on your behalf, handle final payments, and deliver or collect the keys on completion day.
Before signing any Spanish property contract, you must review specific clauses carefully. These terms regulate everything from deposit payments to what happens if legal issues with the property arise. Key areas include:
Most purchases begin with a reservation contract. The buyer pays a small deposit, usually between €3,000 and €10,000, to take the property off the market. This gives roughly three weeks for the buyer’s lawyer to carry out due diligence and legal checks. After this stage, a 10% down payment is typically made.
The balance is paid on completion at the notary, when the public deed is signed, and the keys are handed over. For those considering the benefits of buying off-plan property, contracts will also establish payment stages linked to construction milestones, so these must be reviewed with particular care.
The contract must include a completion date for signing at the notary, stated in the deposit contract (contrato de arras). The most common type is “arras penitenciales,” which allows withdrawal with penalties: if the buyer pulls out, they lose the deposit; if the seller defaults, they must return double the deposit. Making this clause precise avoids disputes and ensures that both parties know exactly what is at stake.
If you plan to finance the purchase with a mortgage, it is vital that this is reflected in the contract. Many foreign buyers rely on bank financing, so it is essential to include a clause making the purchase conditional on mortgage approval. Without it, you risk losing your deposit or being forced to buy without financing.
Any agreed payment facilities or instalment plans offered by the seller must be in writing, as verbal agreements are not enforceable in Spanish property law.
In practice, this means that if you do not secure mortgage approval within a set period, you can withdraw from the contract without penalties and recover your deposit. Without this clause, you risk losing your deposit or being forced to proceed even if the bank denies your mortgage.
When buying land in Spain, it is crucial to verify zoning laws and urban planning compliance, as restrictions can impact whether you are permitted to build or develop the plot.
One of the most overlooked but critical checks is ensuring the property complies with planning and legal requirements. The contract should confirm that:
If serious irregularities are found during due diligence, the contract should allow the buyer to withdraw without court action or require the seller to resolve the issue before completion.
The contract should specify what furniture, equipment, or appliances are included in the sale. A clear inventory—ideally photographic—avoids disputes. This applies to items such as built-in appliances, air conditioning units, solar panels, or lighting fixtures.
While everyone hopes their dream home will be in perfect condition, the reality is that properties can sometimes come with hidden defects—serious issues not visible during a simple viewing. Under Spanish law, buyers of second-hand properties have six months from the date of completion to make a claim for such defects. There are three possible legal remedies:
Beware of clauses stating you accept the property “as is” and waive the right to claim for defects. While such clauses do not remove your legal rights, they can complicate future claims. A carefully drafted contract, reviewed by your lawyer, ensures that your right to seek remedies for hidden problems is fully preserved
Get clear legal guidance on Spanish property contracts
Here you can find some frequent and costly mistakes that you should avoid:
Contracts that omit key clauses or use vague language create risk. For example, failing to specify what happens to the deposit if the sale falls through, leaving dates undefined, or not clarifying whether furniture is included.
Never assume the property is debt-free or correctly registered. Always request a “nota simple” from the Property Registry, which confirms ownership and encumbrances (mortgages, liens, usufructs, etc.).
Without this check, buyers risk inheriting unpaid mortgages, tax debts, or community arrears. Contracts must explicitly state that the property is transferred free of debts and in the seller’s name.
A solicitor with experience in property conveyancing in Spain, committed to preventing disputes through well-planned purchasing procedures. Focused on ensuring safe and legally compliant property transactions for international clients by providing thorough analysis and expert legal guidance. Read more
Before you sign anything, there are a couple of essential steps you should take to protect your interests:
Entering into a property deal in Spain without legal advice is a major risk. A solicitor specialising in Spanish real estate law will:
Review every clause to ensure your protection.
Conduct full due diligence (title, charges, licenses, urban planning, utilities, debts).
Negotiate changes where necessary.
Insist on a bilingual (Spanish-English) contract whenever possible. Many developers and agencies in popular areas already offer this. Otherwise, your lawyer can provide an official English translation.
A bilingual contract gives you several advantages:
While the Spanish version prevails legally, the English version signed by both parties reflects mutual understanding and adds an extra layer of security.
Avoid costly mistakes – consult our real estate lawyers before signing
Buying property in Spain does not have to be stressful or risky. At Tejada Solicitors, we put our expertise at your disposal to make sure every clause in your contract is in order. Our multidisciplinary team includes property lawyers, architects, and tax advisors, each a specialist in their field, who approach your purchase together to minimise risks from a legal, planning, and tax perspective.
Our bilingual team of property lawyers guides international buyers through every stage of the process:
ith over 20 years of experience in conveyancing, taxation, and urban planning, Tejada Solicitors provides trusted support for international clients in Málaga, Marbella, Granada, and across Spain. We offer a free initial consultation commitment, so you can understand your options before signing anything.
“The only way to do great work is to love what you do.”
– Steve Jobs –
Contact Form
Yes, it is possible to cancel a property purchase contract in Spain after signing, but it carries consequences. If the buyer withdraws after signing a deposit contract (arras), they usually lose the deposit paid. If it is the seller who breaches the agreement, they are typically required to return double the deposit to the buyer. For this reason, it is essential to seek immediate legal advice if you need to cancel a signed contract. At Tejada Solicitors, we assist foreign buyers throughout Spain (particularly in Málaga, the Costa del Sol, and Granada) in handling contract cancellations, always aiming to minimize financial losses and legal disputes.
A reservation agreement is a preliminary contract that does carry legal obligations, but in a limited way. It usually involves a small deposit to remove the property from the market for a short period. It is not as comprehensive or strong as a deposit (arras) or purchase contract, but during the reservation period, both parties are bound: the seller agrees not to sell to another party, and the buyer accepts that they may lose the deposit if they do not proceed. If the seller violates the agreement by selling to another party, they must return the deposit to the buyer (and may also be liable for damages). In short, a reservation agreement is legally binding within its scope, although it should later be followed by a more detailed arras or purchase contract. It is always advisable to put every reservation in writing and, if possible, have a lawyer review even these initial agreements to safeguard your interests.
If the seller breaches a property contract, the buyer has legal remedies. In a contract with arras penitenciales, the seller must return double the deposit to the buyer as compensation. If a formal purchase contract has already been signed and the seller refuses to complete the sale, the buyer can take legal action to enforce completion (compelling the seller to sign) or claim compensation for damages. With the assistance of a lawyer, the buyer can defend their rights and recover either their money or the property as agreed.
No. Verbal agreements are not legally valid in Spain for property purchases. For a transaction to be binding, all terms must be set out in writing and elevated to a public deed before a notary. No matter how serious a verbal promise may sound, it cannot be legally enforced if one party fails to comply. That is why every condition or promise must be included in the written contract. Insist on documenting everything, and rely on a lawyer to ensure nothing important is left out.
The notary in Spain plays an essential but limited role in property purchases. Their responsibility is to ensure the formal legality of the transaction: verifying identities and ownership, preparing the public deed, and ensuring that the deal complies with the law. However, the notary does not advise on whether the contract terms are favorable for you, nor will they amend private clauses that may be disadvantageous. This is why it is vital to hire a trusted lawyer from the outset, who will review and negotiate all terms in the reservation agreement, deposit contract, and purchase contract before the notary stage. The notary takes care of formal legal requirements, but the protection of your interests depends entirely on your own lawyer.
Buying property in spain for foreigners: Complete guide
Complete legal guide for foreigners buying property in Spain. Requirements, NIE, UK buyers post-Brexit and legal advice.
Property Solicitors: Expert Legal Assistance for Buying Property in Spain
Property Buying Costs in Spain 2026 – Taxes and Fees
