When Catalan law applies, amounts paid as a deposit are understood to be confirmatory deposits unless their character as a withdrawal deposit is expressly agreed. The difference matters: not every document called an “arras agreement” allows a party to withdraw by forfeiting the deposit or returning twice its amount.
The purpose of the amount paid
Confirmatory deposits evidence the conclusion of the contract and count towards the price under the legal rules. Their name alone does not include an unrestricted right to withdraw. If a breach arises, the agreement and the appropriate remedies must be examined.
Withdrawal deposits require an express agreement. They allow withdrawal with the consequences provided by law, which must be assessed alongside the contractual wording. It is important to distinguish permitted withdrawal from breach and from a condition that is not fulfilled.
What the document should specify
Identify the parties, property, price and amount paid. Review charges, occupiers, planning documentation and deadlines. The date for executing the deed, the payment method and the steps each party must take should not be left in ambiguous terms.
Check who receives the money and their authority to do so. An agency reservation, a payment on account and a sale agreement with a deposit may have different contents. Read the entire document before transferring funds.
If you need financing
Article 621-49 of the Civil Code of Catalonia provides rules for certain contracts that envisage financing by a credit institution. This does not mean that every mortgage refusal automatically entitles the buyer to the return of any deposit.
The contractual provision, deadline, documentary evidence of refusal, relevant institution and other legal conditions must be reviewed, including any agreement to the contrary and the buyer's conduct. If financing is essential, address it expressly before signing, rather than when a refusal arrives.
What to do if the transaction stalls
Keep offers, receipts, correspondence and financing documents. Prepare a chronology and check the dates before announcing withdrawal or demanding twice the deposit. The appropriate response depends on what happened and who was required to perform each step.
Frequently asked questions
Is putting “arras” in the title enough to allow withdrawal?
No. The type of agreement and its contents must be checked, particularly where it is intended to create a withdrawal deposit.
Does buying in Catalonia always make the same law applicable?
The applicable law must be reviewed in light of the contract's circumstances and the relevant rules; it should not be decided solely by one party's address.
You can consult our civil law service before signing or if a dispute arises over the deposit. This information does not determine the right to repayment under a particular agreement.
