Arras
The deposit contract signed between buyer and seller, typically committing 10% of the purchase price.
The contrato de arras is the deposit contract signed between buyer and seller once due diligence is complete and the parties are committed to proceed. It typically involves the buyer paying 10% of the agreed purchase price to the seller (or into the lawyer's escrow).
Spanish law recognises three variants of arras with different consequences if either party withdraws:
Arras penitenciales (the most common): if the buyer pulls out, they lose the deposit; if the seller pulls out, they must pay the buyer double the deposit back. Standard Costa del Sol practice.
Arras confirmatorias: the deposit is simply a down payment on the price; either party can sue for specific performance if the other pulls out.
Arras penales: the deposit is a penalty for breach, but specific performance can also be sought.
Most foreign-buyer transactions use arras penitenciales. Read the specific clause carefully — the version of arras governs what happens if the deal falls through.