Getting a contract checked before you sign it in Spain

Terms used

• Nota simple — The nota simple is a land registry extract showing a property's owners, debts and charges.
• Escritura pública — The escritura pública is a public deed signed before a notary, needed to register a property sale or mortgage.
• FEIN — The FEIN is the bank's pre-contract mortgage information sheet, which you must receive in advance.
• Contrato de arras — The contrato de arras is the deposit contract in which a buyer pays arras to reserve a property.
• Arras — Arras are money a buyer pays when signing the deposit contract; their type decides whether you can withdraw.

Key rules

• Check first: Give your lawyer the full draft before you sign, not after.
• Notary role: The notary checks identity and legality but does not advise you.
• Deed: A property sale to be registered, a mortgage, a company, a will and a power of attorney need a public deed.
• Language: Not understanding Spanish rarely lets you escape a contract, so get a translation first.
• Arras: Make sure the contract states which type of arras applies.

When to get a lawyer to check it

Have a lawyer read the contract before you sign whenever it involves a lot of money or a long commitment. That means:

• buying or selling a property, including the deposit contract and the mortgage
• a long lease
• setting up a company or buying shares
• an employment or director contract
• any contract with penalty clauses or personal guarantees

Send the full draft before you sign, not after. A private contract is valid without a notary, so once you sign it you are usually bound.

For a property, the lawyer should also check the owners, debts and charges on the nota simple, plus planning status, licences and any debts to the community of owners. The checklist below lists what to hand over.

When you need a notary and a deed

A notary is required for a public deed (escritura pública). You need one for a property sale that will be registered in the Land Registry, a mortgage, a company incorporation, a will and a power of attorney.

The notary checks identity and legality and explains the document. The notary does not act as adviser for you or the other side, so you still need your own lawyer.

If you take a mortgage, the bank must give you the FEIN in advance. You then attend the notary's advice session before signing.

Signing in Spanish

Not understanding the language rarely frees you from a contract. Courts seldom accept that alone as a mistake, because you are expected to get a translation first.

• For a deed, if you do not know Spanish you must have an interpreter, whom you name. The notary can also record the deed in two columns or have it translated.
• For a private contract, no translation is required by law. Ask for a bilingual version that says which version prevails.
• Consumer contracts must be clear and understandable.

Arras: the deposit trap

Arras are the money a buyer pays when signing the deposit contract, the contrato de arras. The type matters, and the wording of the contract decides it.

• Penitential (penitenciales): this is the default if the contract clearly says so. You can walk away by losing the arras. The seller can walk away by returning double.
• Confirmatory (confirmatorias): a down payment counting toward the price. It gives no right to withdraw. If either side breaches, the other can demand performance or end the contract and claim damages.
• Penal (penales): a penalty for breach. The other side can claim it plus damages if the contract says so.

To lower your risk:

• Check the property before you pay.
• State the type of arras in the contract.
• Set the completion date.
• Add conditions, such as mortgage approval.
• Have a lawyer review it all first.

The warnings and FAQ below cover the common mistakes.

Documents you need

• The draft contract, in full, to give to your lawyer before you sign, not after.

• A recent land registry extract (nota simple) for the property, which a lawyer uses to check owners, debts and charges.

• Proof of any community of owners debts, planning status and licences for the property, for your lawyer to check.

• For a mortgage, the pre-contract mortgage information sheet (FEIN) from the bank, which you must receive in advance of the notary's pre-signing advice session.

• A bilingual version or translation of the contract, stating which version prevails. Not required by law for private contracts, but strongly advised if you do not read Spanish.

• A public deed (escritura pública) from a notary, needed for a property sale to be registered, a mortgage, a company incorporation, a will or a power of attorney.

What to watch out for

• Signing first and checking later: A private contract is valid without a notary, so you can be bound before anyone has checked it. Have a lawyer draft or check it before you sign, especially for property, long leases, company deals, or any contract with penalty clauses or personal guarantees.

• Losing your deposit through arras: If you pay arras and then withdraw, you lose the deposit. Unclear wording can also lead to disputes about which type of arras applies. Make the contract state the type of arras, the completion date and conditions such as mortgage approval.

• Buying without checking the property: You may inherit debts, charges, community of owners arrears or planning problems, and the seller could sell to someone else. Have a lawyer check the land registry (nota simple), debts, planning status and licences before you pay.

• Signing in a language you do not understand: Courts rarely free you from a contract just because you did not understand the language. Get a translation or bilingual version that says which version prevails, and use an interpreter at the notary.

• Expecting the notary to be your adviser: The notary checks identity and legality and explains the document, but does not act for one side. Hire your own lawyer to look after your interests.

Frequently asked questions

Does a Spanish contract bind me if I do not understand Spanish?

Yes, in practice you are usually bound by a contract you signed even if you did not understand its language. Courts rarely accept not knowing Spanish as a reason to cancel, because you are expected to get a translation first.

Do I need an interpreter at the notary if I do not speak Spanish?

Yes, if you do not know Spanish, a deed signed at a notary must be explained through an interpreter whom you name. The notary can also write the deed in two columns or have it translated. Private contracts do not need a translation by law.

Which type of arras should I ask for as a buyer?

Ask for the type to be written clearly in the contract, because the wording decides what happens. With penitential arras, you can withdraw by losing the deposit and the seller can withdraw by returning double. Confirmatory arras give no right to withdraw, and penal arras can be claimed on top of damages if the contract says so.

Can I make the deposit depend on getting my mortgage?

Yes, you can ask for conditions such as mortgage approval to be written into the arras contract, along with the completion date. Have a lawyer review the wording before you pay anything.