An earnest money deposit (contrato de arras) secures a home purchase in Spain. However, depending on the exact wording, the legal path for backing out changes completely.
General information. Not legal advice.
These are the most common and the only ones explicitly regulated by the Civil Code. They allow either party to withdraw: if the buyer backs out, they lose the deposit; if the seller backs out, they must pay back double.
These represent an advance payment of the purchase price and do not allow either party to pull out. If one party backs out, the other can legally sue to force the sale or seek damages.
These set a fixed penalty amount for breach of contract. The deposit is lost or doubled as a direct penalty, but the non-defaulting party still retains the legal right to force the sale in court.
If the contract does not explicitly mention Article 1454 of the Civil Code or state that the deposit is "penitencial", Spanish courts interpret the contract as "confirmatorias," meaning you cannot easily withdraw.
Analyze your draft contract to confirm whether you can back out safely or if you are exposed to potential lawsuits.
Analyze arras contract