Legal documents & contracts FAQs
The key documents you will see during a purchase, what they mean, and why they matter.
What is a NIE number and do I need one?
A NIE number is your personal tax identification number in Spain. If you are buying property, you will need it, as it is required for the purchase process and for signing at the notary.
It is also needed for paying taxes, setting up utilities and registering the property in your name. Most buyers arrange their NIE early, as it is one of the first steps needed to move forward smoothly.
What is a Nota Simple and why is it important?
A Nota Simple is an official extract from the Spanish Land Registry. It confirms who the legal owner is and shows important details such as the property description, any mortgages, debts, charges or restrictions registered against it.
It is one of the key documents your lawyer will review before you commit to the purchase. It helps ensure that the property is legally correct and that there are no surprises after completion.
What is a reservation contract in Spain?
A reservation contract is typically used for new build properties. It is a short agreement that confirms your intention to purchase the property and takes it off the market for an agreed period.
When signing, you normally pay a reservation deposit. The agreement should clearly state the purchase price, payment terms, deadlines and what happens if either party withdraws.
It is important that the reservation contract is reviewed properly, as it is the first step that secures the property in your name.
What is the Contrato de Arras?
The Contrato de Arras is a private purchase contract used in Spain, most commonly for resale properties. It confirms the agreed terms of the purchase and includes the completion date and conditions.
After this, both parties are committed to completing the transaction under the agreed conditions. This contract is a key stage in the buying process and should always be checked carefully before signing.
What happens if the seller pulls out after signing the Arras contract?
If the seller withdraws after signing the Arras contract, they are legally required to return the buyer’s deposit and pay the same amount again as compensation.
In practice, this means the buyer must receive double the deposit amount. This is one of the key protections for buyers in Spain and is exactly why the Arras contract is taken seriously by both parties.
What happens if the buyer pulls out after signing the Arras contract?
If the buyer decides to withdraw after signing the Arras contract, the deposit is normally lost. This is the standard structure of the agreement and is intended to protect the seller if the buyer changes their mind after committing.
However, the exact terms can vary slightly depending on how the contract is written, so it is important that your lawyer reviews it before you sign.
