“The deposit takes the property off the market” is only part of the explanation a buyer needs.
Before paying a reservation amount, have an independent lawyer review the proposed agreement. Ask what you are agreeing to, who receives the money and what happens next.
In particular, clarify:
- Whether the seller is bound by the arrangement.
- The deadline for the next contract or payment.
- Which checks must be completed before you proceed.
- What happens if finance is unavailable or a property issue is found.
- The circumstances in which the money is refundable, retained or applied to the price.
Do not assume a payment is refundable because someone describes it as “just a reservation.” The signed wording and circumstances matter. Equally, do not assume every reservation arrangement has identical consequences.
Keep a copy of the agreement, payment instructions and receipt. Where automatic deposit protection is included in the agent’s applicable API scheme, it adds a safeguard for qualifying payments. Ask for confirmation that your particular payment falls within it. Protection against a covered loss does not mean that a deposit must be refunded whenever a buyer changes their mind.
If you are under pressure to transfer money immediately, ask what genuinely requires urgency and allow time for the agreement to be explained.
Quick answers
Is a reservation deposit refundable in Spain?
It depends on the agreement and circumstances. Have your lawyer explain the refund provisions before you pay; deposit protection does not create an unconditional refund right.
What should a Spanish property reservation agreement include?
Clarify the parties, payment recipient, seller’s commitment, deadlines, checks, conditions and consequences if the purchase does not proceed.
Should a lawyer check a reservation agreement before payment?
Yes. Review before signing or transferring money gives you the opportunity to clarify obligations and negotiate conditions.
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Our guidance is provided by an API-accredited agent, API - 02621. Tell us about your plans and we can explain our service and the next steps.
General buyer information. Obtain advice specific to your property, agreements and circumstances before committing.