Arras: Down payment, deposit on a property purchase: Down Payment/Deposit: This is the amount of money usually handed over in Spain to the property vendor as a guarantee that the purchaser will sign the deal within a given time frame. It is usually made up of a percentage of the total price of the property.

If the purchaser decides not to go through with buying the property within the fixed timeframe the deposit is lost. In the same way, if the seller does not sell within the timeframe agreed or decides to sell to someone else they must repay double the amount given as a deposit back to the potential purchaser.

This is a quick and simple way of reinforcing the commitment of buyers and sellers in the property market, and is supported by Spanish law.

Once contracts have been exchanged the deposit already paid is normally deducted from the total price of the property when the deeds are signed before the Spanish notary at the moment of the property purchase.

It is important to have a well-advised legal sales contract so make sure you get yours checked by a Spanish lawyer.

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