Where buyers get caught out
An arras contract is binding. With penitential arras, a buyer who withdraws for a reason the contract does not cover loses the deposit, usually around 10% of the price. Seller-drafted contracts rarely include conditions for the buyer's checks or mortgage.
What we look for
| Clause | The question | Typical fix |
|---|---|---|
| Type of arras | Who can walk away, and at what cost? | The type that matches your plan |
| Conditions | Refund if checks or mortgage fail? | Due diligence and finance conditions |
| Description | Matches registry, Cadastre and reality? | Every building and annex listed |
| Licences | Does the seller warrant licences and rental status? | Warranties and retentions |
| Dates | Is completion realistic? | Date linked to NIE, mortgage and checks |
| Deposit | Who holds it and when is it released? | Clear instructions, verified account |
| Non-resident seller | Is the 3% retention covered? | Retention clause |
Reservation forms
Before the arras contract, many agents ask for a reservation fee. It should be refundable if the checks show a problem, valid for a set period and credited against the price. We review it the same way.
How it works
- Send us the draft and the listing by email or WhatsApp.
- We obtain the Land Registry extract.
- You receive a written review clause by clause.
- If you wish, we negotiate the changes.
- Then we continue with due diligence and completion.
If you have already signed
We explain your rights, the deadlines and whether any condition lets you withdraw. If the seller breaches, we claim double the deposit or completion. See civil disputes in Menorca.
We also review contracts for sellers. See selling property in Menorca. Menorca.law is part of Castell.law.
An illustrative example
Based on situations we commonly see; not a specific client. A German couple received an arras contract for a villa near Sant Lluís with a 48-hour deadline and no conditions. We added a finance condition, a due diligence condition with a ten-day window and a seller warranty on the pool licence. The seller accepted, the checks found the pool unlicensed, and the couple renegotiated instead of losing their deposit.
Before you sign or pay, ask a lawyer
Send us the document, the listing or a short summary of the problem. A lawyer will tell you what matters, what it could cost you and what to do next.
Questions about arras contracts in Menorca
How quickly can you review it?
Usually within one or two working days. Tell us the deadline when you send it.
Is my deposit lost if the mortgage is refused?
Only if the contract says nothing. A finance condition protects it.
Can the seller refuse changes?
Yes, but most accept reasonable conditions.
The contract is in Spanish. Is that a problem?
We explain it in your language and can request a bilingual version.
What if the seller pulls out?
Under penitential arras the seller usually has to return double the deposit. We claim it if they do not pay voluntarily.