The earnest money contract is the document that commits your money. We review or draft it to protect your position before it is too late.
A generic template downloaded from the internet can leave you unprotected and without your money. Every arras clause has real financial consequences.
The earnest money contract is the most delicate moment of any property purchase: when you sign it, you are already committing between 5% and 10% of the price. Yet it is common for the estate agency to hand over a standard template drafted to protect the seller, with short deadlines to obtain the mortgage and no condition precedent. If you don't get the financing in time or a charge appears in the property check, you can lose the deposit. Reviewing or properly drafting the arras is the most profitable investment of the whole transaction.
We define the type of arras that best protects your interests, whether you are buyer or seller, avoiding being locked into a purchase or losing the deposit unfairly.
We include conditions precedent that let you recover the deposit if the bank does not grant financing, protecting your money against banking setbacks.
We know that time is short in a property transaction. That's why we offer an express service: send us the draft arras and we return a report with comments and the corrected version in under 48 business hours.
Review my arras nowNot all earnest money is the same: the type you sign determines what happens if the deal falls through.
They allow either party to withdraw: the buyer loses the deposit and the seller returns it twofold. The most common and flexible. Regulated in art. 1,454 of the Civil Code.
They confirm the contract as a payment on account. If one party breaches, the other can demand performance or terminate with compensation. They do not allow free withdrawal.
They set a penalty for breach, but without the right to withdraw: the complying party can also claim performance of the contract. Useful to reinforce commitment.
Send it to us and we'll review it urgently so you sign with complete security.
The earnest money contract is an agreement prior to the purchase by which buyer and seller reserve the deal and the buyer hands over a deposit on account of the price. It sets the price, the deadline to sign the deed and the consequences if a party backs out. It is the first document that commits your money, which is why it should be reviewed before signing.
Penitential arras allow you to withdraw from the contract by losing the deposit (buyer) or returning it twofold (seller). Confirmatory arras are part of the price and, if one party breaches, the other can demand enforcement or compensation. There are also penal arras. Choosing the wrong type can cost you the deal or your money.
You only recover the deposit if the contract includes a properly drafted, time-limited condition precedent for non-granting of financing. Without it, you could lose everything paid even if the bank denies your mortgage. That's why reviewing the arras before signing is critical.
Typically between 5% and 10% of the purchase price, although it is negotiable. We help you set an amount that protects you without over-committing your liquidity or giving the other party an advantage.
Yes. The deposit handed over as arras is considered a payment on account and is deducted from the total price when the public purchase deed is signed. If the deal falls through, the fate of the deposit depends on the type of arras agreed.
With penitential arras the seller must return double the deposit. With confirmatory arras you can demand performance of the contract in court (that they sell to you) or compensation for damages. We advise you on the most convenient route.
Yes. We offer a review and drafting service for earnest money contracts in under 48 business hours so you don't lose the opportunity on the property.