The earnest money contract commits 5%-10% of the price. These are the mistakes that cost the most money and how to protect yourself before signing.
Buying & selling · Updated October 2026 · 6 min read
The earnest money (arras) contract is the first document that commits your money in a purchase. A mistake in its clauses can cost you the entire deposit. These are the most common errors:
Penitential arras allow you to withdraw by losing/returning double the deposit; confirmatory ones force performance. Signing the wrong type can lock you into a purchase or leave you unprotected.
Without a clause that lets you recover the deposit if the bank refuses financing, you can lose everything. It's the most expensive mistake.
A deadline that's too short to obtain the mortgage works against you. It must be realistic.
Signing without reviewing the Land Registry extract and the property's charges means taking on other people's debts. A prior review is advisable.
Make clear who pays notary, Registry, taxes and capital gains tax.
A generic template rarely covers your situation and usually protects the seller.
It's the most profitable investment of the whole deal. A lawyer reviews or drafts your arras and saves you trouble.
You only recover the deposit if the contract includes a properly drafted condition precedent for non-granting of financing. Without it, you can lose what you paid.
Typically between 5% and 10% of the price, although it is negotiable.
If a prior review or a condition linked to the registry situation is agreed, yes. That's why it's advisable to review the property before signing.
Penitential arras let you withdraw by forfeiting or doubling the deposit; confirmatory ones oblige you to complete and indemnify damages; penal ones set a penalty. If not specified, courts usually read them as confirmatory: a costly mistake.
It is not mandatory, but it is standard to reserve the property and set the terms. Other figures such as a reservation contract have different effects; it's important to know exactly what you are signing.
You can, but it's where most money is lost: poorly drafted financing conditions, ambiguous deadlines or unchecked charges. A prior review costs little compared with the risk of losing the deposit.
We review it in under 48 hours and protect your deposit before you sign.
