Spanish Arras Agreement and Portuguese CPCV

Everything you need to know about the role of Spain’s Arras Agreement and Portugal’s CPCV when purchasing real estate

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What is an Arras Agreement and a CPCV?

They are both contracts that real estate investors in Spain or Portugal must use when making a property purchase.

An Arras Agreement is for Spanish property, while a CPCV is used in Portugal. These contracts are between the the property owner and the buyer and includes details such as the sale/purchase price and signing agreement. Whether you’re in Spain and use an Arras or in Portugal and need a CPCV, they are both essentially pre-agreements to complete a real estate transaction.

They act as a formal way to reserve a potential real estate transaction in Spain or Portugal when the buyer has yet to complete formal requirements for completing the entire transaction. This can include: finalising mortgage approval or ending a licensing procedure.

How do they work?

Typically, the buyer will pay around 10% of the final price as a down payment. The exact percentage depends on the country and region, and both parties can negotiate a higher or lower percentage. 

If a signed Arras Agreement or CPCV is not fulfilled by the purchaser, the seller can claim the down payment. This occurs when the buyer refuses to sign the final contract.

Conversely,  if the seller fails to sign the final contract, the potential purchase has the right to receive double the original Arras down payment from the seller.

Let us to do the work!

How can a lawyer help me?

Our lawyers have a deep understanding of what should be covered and omitted in an Arras or CPCV. Lexidy’s Real Estate experts will ensure the appropriate clauses are used in all documentation to protect your best interests.

Our Real Estate lawyers are here to prevent specific risks. These can include the property’s characteristics and issues with the documentation.

¨Don’t get lost in translation. Buy Spanish real estate with confidence¨

– Real Estate Team

What are the requirements?

While there no mandatory requirements to complete and finalise an Arras Agreement or CPCV, it is vital that you carefully review all documentation with a Real Estate expert before signing any paperwork. These documents are essentially promissory contracts where both parties agree to specific rights and obligations that have financial consequences.

For example, if you encounter an issue after signing the Arras Agreement and withdraw from the purchase, you will lose the 10% down payment you made. 

We recommend that the buyer awaits for the following documents to be verified for proceeding:

  • Permanent Certificate or Simple Note
  • Urban Land Register
  • Property’s utilisation license;
  • Energy Certificate.

What's the Process for an Arras or CPCV?

  1. Gather the relevant documentation, which typically takes clients up to 15 days.
  2. Verify the viability of the property and the paperwork, such as the Arras or CPCV. We suggest allocating up to 30 days for this.
  3. Draft the deed. We will spend up to ten days on this step, depending on the other party demands.
  4. Sign the contract. You can do this is absentia by granting a Real Estate expert “Power of Attorney”

Find you Real Estate Lawyer

Alejandro

Alejandro Cano

Associate - LLM Abogado ( El Salvador )
Carlota Foucault Llopart

Carlota Foucault Llopart

Real Estate Specialist
Julia

Júlia Cleries

Real Estate Specialist
Antonio Torres

Antonio Torres Valdés

Head of Real Estate Department

Frequently Asked Questions

In Spain, the contract is considered resolved and the buyer has the right to receive the 10% down payment. 

In Portugal, it’s up to the buyer.

You can prevent the loss of fees and deposits by making the loan’s approval a condition of the contract.

The party who hasn’t signed must compensate the other party with the amount agreed in the Arras Agreement or CPCV. 

However, if both parties are still interested in signing the contract, they can agree to proceed and forego compensation.

Usually, the parties agree to 30 months but it’s possible to include a time extension clause. However, it depends on the arranged agreement. 

Be happy. Join a community of satisfied and successful customers

Pit Rissiek
Pit Rissiek
09:37 19 May 22
Absolutely Professional and worth-it Experience!I can highly recommend working with Carlota Llopart and Lexidy! Carlota and the team have gone beyond my expectations when it comes to owning and actually even driving the steps for my mortgage, the purchase of my flat as well as taxes filed. I have had an extremely difficult seller, but I was able to fully trust the team to guide me through this first acquisition.I have already recommended Lexidy to friends who had similar positives experiences and will continue working with Carlota and the team. Side note, me being German: Great value for money too!
Mariposa Avaria
Mariposa Avaria
19:50 05 May 22
Han logrado lo prometido, gracias especialmentea Alejandro
Miklos Horn
Miklos Horn
06:21 03 May 22
Most recent experience:We cannot emphasize how satisfied we were with Antonio (10/10 ⭐️), and everyone from Lexidy who helped us while purchasing a property at the beginning of the year. This law firm is one of a kind! It was the second time we worked with them (as the first time our purchase was unsuccessful), and they keep surprising us with their professionalism and attention to detail.It must be mentioned that everyone spoke English, and most of the communication was done online (especially good in case you want to have all the documentation backed up safely). Antonio also made sure to answer all of our questions even after finalizing the purchase – and we asked a lot –, so that we could understand each step along the way. We are returning customers of Lexidy as their expertise is outstanding in all areas. Thank you very much, Antonio and everyone who helped us!Previous review:We had the pleasure of working with Antonio while making an offer for a flat in Barcelona, and everything went surprisingly professionally and well. We were supported throughout the whole process in English (great plus!) and Antonio was always available, even when we had very short deadlines. Lexidy made sure to collect all the documentation that was needed from the seller, and did a really thorough job on negotiating the Arras contract and carrying out the Due Diligence. Even though we were unsuccessful in securing a mortgage in the end, we can only recommend Lexidy and Antonio for everyone who wants to avoid the administrative headaches that come with property purchase. We even received an unexpected discount in the end since the deal was not successful, and we will definitely be relying on the services provided by Lexidy should we need it in the future. Really satisfied with the service: 10/10!
Aleksandar Vorinski
Aleksandar Vorinski
08:12 25 Apr 22
I recently purchased apartment, got NIE and opened bank account with their help. I m satisfied with their service, they are accurate and responsible.
Simone Bech
Simone Bech
11:43 22 Mar 22
I hired Alejandro to help me get my NIE. I needed the process to go fast, as my future workplace wanted me to start ASAP. Alejandro promised me that I would get it within 3-8 workdays, and he managed to do so. He made the process sooooo easy for me! I would recommend Alejandro any time.
Michelle Swallow
Michelle Swallow
18:18 25 Sep 21
We recently retained the services of Lexidy Law Boutique to file our non-resident tax returns. As US citizens who own property in Lloret de Mar, Spain we were unfamiliar with the complexities of the Spanish tax system. Fortunately, we were able to benefit from the considerable expertise of Jose Garcia, Head of the Tax Department at Lexidy. He explained the procedure in detail to us and was extremely diligence and thorough throughout the whole process. What could have been a challenging situation for us became a very smooth process because of the expertise and capabilities of Jose Garcia and his staff at Lexidy Law Boutique. I would highly recommend the services of Lexidy Law Boutique.
A Striniqi
A Striniqi
07:14 20 Sep 21
At the recommendation of a Portuguese friend of mine, I contracted the Lexidy Law Boutique in the period March - May 2021 for the purchase of real estate in Portugal. Due the pandemic, most of the communications and consultations happened online/remotely, but that did not have an adverse impact on their quality of services. After the first guidance and consultation on Portugal's immigration policies and real estate purchasing processes, the team handled efficiently the process of obtaining my NIF, the verification of legal and overall status of the property, the negotiation and drafting of the CPCV, the deed formalities and the registration of the transfer of ownership property with the municipal and tax authorities. Throughout the whole undertaking, the team was very helpful, passionate and thorough in answering all questions and provide clarifications and information as needed. They were very responsive and made sure they followed up the process in every step. I wish to thank particularly Bettino and Gabriel for their dedication, patience and valuable advice. Lexidy Law boutique is a trustworthy partner that will facilitate your immigration and real estate projects and I highly recommend them!!
Matt Pavlovich
Matt Pavlovich
11:18 15 Sep 21
A great group of very knowledgable lawyers. They've been very helpful in matters of immigration, international taxation, and real estate. Very highly recommended!
Don Ellis
Don Ellis
15:16 08 Sep 21
Great full service firm that provided our family professional legal services surrounding our move to Spain. Included assistance with both Visa application and real estate purchase. Highly recommend
Idriss Dhifallah
Idriss Dhifallah
13:10 31 Aug 21
Before being directed to Lexidy we have tried few lawyers but none was as reactive, professionnal as lexidy. Buying in spain is a stressful and lengthy process but having lexidy in our corner made us confident we will close everything smoothly. We have dealt with Antonio Valdes and Alejandro Cano both showed a very high level of professionalism and reactivity. The pricing is fair and they offer an all in solution for peace of mind. Can not recommend any better!
Sarah Whitehouse
Sarah Whitehouse
12:08 31 Aug 21
Both José and David have been extremely helpful in informing me about various legal procedures in Spain. I highly recommend Lexidy for anyone looking for honest and insightful legal advice in Spain. Thank you both!
Gail Robinson
Gail Robinson
18:48 05 Aug 21
Lexidy guided us through the purchase of an apartment in Barcelona. It was quite complicated; we were in New York and because of the pandemic had to do everything remotely. This would have been impossible without the sound advice--in English!--and help of various lawyer at Lexidy, particularly Alejandro Cano. They even inspected the apartment because we couldn't see it in person and arranged for us to open a bank account. Since Lexidy is the only law firm i Barcelona we've worked with, I can;t compare them to others there but working with them was certainly easier than dealing with U.S. law firms. Highly recommended!
Keeta Kimura Morales
Keeta Kimura Morales
11:26 29 Jul 21
Muchas gracias a Alejandro Cano por el buen trato, personalizado y profesional, en la operación que requerimos de sus servicios. Fue una operación muy larga y complicada, fuera de toda normalidad y que en la mayoría de casos hubiera sido imposible cerrar de forma positiva.Por lo que muy contentos del resultado, pese a las adversidades.
Branden Bickel
Branden Bickel
23:28 21 Jul 21
I am a retired real estate lawyer in California. Another lawyer referred me to Monica Isern Lopez of Lexidy in Barcelona for an immigration problem. I found Monica to be prompt, thorough and highly professional. I will turn to her and Lexidy whenever I have a similar problem in that region. I highly recommend her law firm.
Jennifer Yeung
Jennifer Yeung
11:39 21 Jul 21
The best service you could get with a law firm. In my personal experience, Alejandro is very helpful and efficient, he could explain to you cristal clear terms with the process of an acquisition for a foreigner. I highly recommend them as your attorney on your behalf.是我经历过的最好的服务,作为法律供应商。亚历山大非常好,他很有效率,英语也很好。如果你作为外国人去西班牙投资,一个快速回应,英语很好,对购买过程熟悉的合作伙伴必不可少。非常推荐他们!当然,我最初也是朋友推荐过去的,服务超出想象的好。
Dan Briere
Dan Briere
11:40 14 Jul 21
Alejandro was personal, attentive, and responsive while assisting me in obtaining my NIE in Spain. Overall - the process took less than two working days - weeks shorter than I was quoted by other firms. Alejandro has also been helpful in introducing me to others from the Lexidy office who have assisted in answers related to immigration and taxes. I will recommend Lexidy to others and look forward to working more with them moving forward.
Nicolas Schindler
Nicolas Schindler
08:14 14 Jul 21
Alejandro and his team did an amazing job! Looking for to working with them in the future again!
Bushra Husain
Bushra Husain
17:18 17 Jun 21
It was a pleasure to work with Alejandro and Antonio while living in the US! They helped us navigate the entire process of purchasing a house in Barcelona, and were extremely responsive and helpful with numerous questions! They are also very knowledgable and gave excellent advise with various issues. We could not have done this without their help!
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