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The essentials
When you buy property in Madrid, there is almost always a day when you hand over money without having keys or a title deed: the day you sign the deposit contract (contrato de arras). That document decides what happens if the bank refuses the mortgage, if a seizure order appears or if the seller receives a better offer. That is why our work as a lawyer for home purchases starts earlier, while every clause can still be negotiated.
Our lawyers review the draft that the estate agent or the seller gives you, request the land registry information on the property, check the receipts and the position with the owners’ community, and explain what binds you and what protects you. If needed, we draft the contract ourselves. We then prepare the deed of sale and its registration, which closes the transaction against third parties.
If your property search has just begun, or you are a foreign buyer, we also explain the Spanish process in plain English: what a nota simple is, what a notary does and what the Land Registry adds, where each step takes place and how the value of the property is checked. We can advise on the purchase of an apartment or a house in the Madrid property market, and on buying property in Spain more widely. This page is part of the real estate lawyers in Madrid area of R. Sánchez Abogados, the branch of the firm dedicated to this field, based on Paseo de la Castellana. The same team of lawyers handles the transaction from start to finish. If the building has problems with special levies or unpaid charges, see also our page on owners’ communities in Madrid. If your concern is a defect that appeared after you bought, that is a claim for hidden defects, which our civil law area handles.
The Civil Code expressly regulates only the arras penitenciales; the other two types have been shaped by the courts. That is why what the text says matters more than the title.
Signing a deposit contract for a flat in Madrid and want someone to read it first?
The figures in the law that matter most to a buyer.
Double the deposit
is what a seller who withdraws returns under a withdrawal deposit; a buyer who withdraws loses it
source: art. 1454 CC
Current year and 3 previous
unpaid community charges for which the property remains liable even if it changes owner
source: art. 9.1.e LPH
7 calendar days
maximum time for the community secretary to issue the certificate of debts that goes with the deed
source: art. 9.1.e LPH
5 years
general limitation period for personal claims with no special period, such as claiming for breach of contract
source: art. 1964 CC
This is how we organise a typical purchase of a second-hand home in Madrid. The aim is to help you take each decision knowingly and reach the notary’s office with no surprises.
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If the agency asks you for a reservation deposit, we review the document, since your property search may end here, which is sometimes already a commitment to buy.
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We request an up-to-date simple extract (nota simple) from the Land Registry and check ownership, charges, property tax (IBI) receipts, the position with the owners’ community and the energy performance certificate.
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We agree the type of deposit, the deadline for the deed, what happens if the valuation or the mortgage does not come through and the condition in which the home is handed over.
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We review the draft deed, the community’s certificate of debts, the declared value of the property and the cancellation of the seller’s mortgage, if there is one.
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The applicable tax is settled with the Community of Madrid and the deed is filed at the Land Registry (Registro de la Propiedad).
We check that the seller is the registered owner, whether there are mortgages, seizures, notes of pending claims, usufructs or easements, and that the property matches what you viewed. We also request planning information to rule out open files. The nota simple does not expire, but it only reflects the Registry on the day it is requested, so we repeat it before the deed.
Deadline for the deed, financing condition, delays, vacant possession on delivery and sharing of expenses. Article 1455 CC makes the seller responsible for executing the deed and the buyer for the first copy, unless agreed otherwise.
We ask for the latest IBI receipt and the account statement with the community, special levies included. The certificate of debts is mandatory at the deed; we want to see it before the deposit contract.
The registered energy performance certificate and its rating must be attached to the sale contract (art. 17 of Royal Decree 390/2021). We also look at the building’s technical inspection and any pending works.
The sooner you tell us, the more room we have
The advice a real estate lawyer gives changes with who is buying and what the property is. These are the client profiles we see most.
They usually finance with a mortgage. Our advice, which takes into account the value of the home, focuses on the financing condition, the deadlines and the condition in which the flat is handed over.
For properties bought as an investment, and in transactions by companies in the sector, real estate advice also covers existing leases, licences and the structure of the deal.
If the flat has a tenant, the buyer takes over the tenancy agreement for the period set by article 14 of the Urban Leases Act (LAU). The tenant may also have a right of first refusal and of pre-emption (art. 25 LAU), unless validly excluded; it is advisable to settle this before the deposit contract.
In a new-build villa or a flat in a development, we review with the developer the security covering sums paid on account, the specifications, construction defects and late delivery. For flats that come from an inheritance, we check that all the heirs have accepted and sign the sale.
If the seller does not sign the deed or the buyer does not pay, everything depends on the type of deposit. With withdrawal deposits, the law already sets the consequence. With confirmatory deposits, the party that has performed can demand enforced performance or termination, with damages and interest (art. 1124 CC). If there is already an agreement on the home and the price, either party can compel the other to execute the public deed (art. 1279 CC).
If the buyer is late paying the price, article 1504 CC lets the buyer pay until the seller formally demands it, by court or by notarial record. Before suing, since April 2025 Organic Law 1/2025 requires trying a prior negotiation through an appropriate means of dispute resolution. Many deposit disputes are settled there. If not, we take on your defence: the claim is filed with the Civil Section of the Court of First Instance of Madrid (Tribunal de Instancia) and the appeal is decided by the Provincial Court of Madrid (Audiencia Provincial).
With these, sent by email or delivered in person, we can start the service and give you our opinion on the transaction:
Some templates titled “arras penitenciales” contain clauses that oblige you to buy. What counts is the content, and in case of doubt the right to withdraw is not presumed.
If the bank refuses the loan and the contract does not provide for it, losing the deposit is a real risk. A financing clause with a deadline and a way to prove the refusal avoids it.
A seizure can be registered between the extract you were shown at the viewing and the day of the deed. And if a seller sold the same home twice, ownership goes to whoever registers first in good faith (art. 1473 CC).
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That if a deposit or token payment was handed over in the sale, the contract can be set aside if the buyer accepts losing it or the seller returns it doubled. It is the basis of the withdrawal deposit (arras penitenciales).
It is not mandatory, but the notary attests to the transaction without defending either party, and the agency mediates between buyer and seller. A real estate lawyer reviews the property and the contract with only your interests and your property rights in mind.
The law sets no amount or percentage. Buyer and seller agree it, and it is deducted from the price if the purchase is completed. With withdrawal deposits, it is what you put at risk.
There is no legal period. It is agreed in the contract and must be long enough to obtain financing and prepare the deed. If it expires without signing, it must be established who has breached the contract.
They answer different questions. The Land Registry reports ownership and charges, while the Cadastre (Catastro) describes the property for tax purposes. If the surface area or boundaries do not match, it is advisable to clarify this before signing.
The sale is the contract; the public deed is the notarial form that allows it to be registered at the Land Registry (art. 1280 CC).
Yes. If you are buying a house or apartment elsewhere in the country, our real estate lawyers work from six offices in Spain and advise and assist on transactions in any province, applying the rules of each autonomous community.
On a second-hand home, Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP), which the Community of Madrid manages. On a new build, VAT and Stamp Duty (Actos Jurídicos Documentados, AJD). The ITP and AJD rates are set by each autonomous community, so we work out the tax position for your case. The municipal capital gains tax (plusvalía) is paid by the seller as the taxpayer (art. 106 TRLRHL).
