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Reservation contract for new construction
“Booking an apartment in Mallorca: The reservation contract explained – opportunities, risks and tips”
As a foreign buyer in Mallorca, you will soon come across the term “contrato de reserva ” – the reservation contract. Unlike in Germany, in Spain there is often this intermediate stage before the final purchase contract is signed at the notary (escritura). This contract can help – but it also offers uncertainties if you don’t know the details.
In this article, I explain what the reservation contract is all about, what is typically regulated and what you should pay particular attention to – so that you have the chance to secure a property without any unforeseen disadvantages.
1 What is the reservation contract about?
You pay a small deposit as a sign of your serious interest in buying.
The seller undertakes to keep the property available for you for a certain period of time.
Conditions are laid down: who pays when, how long the reservation period runs, what happens if one of the parties does not continue.
2. which points should the contract contain?
Part of the contract | What should be clear |
|---|---|
Who is involved | Full name, identity card/NIE number – both buyer and seller. |
Which property | Address, dimensions, floor, condition, special features (e.g. terrace, garden, pool). |
Reservation amount (“señal”) | How much, how paid (bank transfer, check, etc.), will this amount be deducted from the final purchase price? |
Deadline for completion of the purchase | When must the final purchase contract be signed? What is the deadline? |
Payment modalities | How and when do you pay the rest, whether a deposit or partial payments are necessary. |
Status and messages/documents | Z. E.g. energy certificate, if necessary, license or building permit for new buildings. |
Withdrawal clauses | Under what conditions can one of the two drop out? Is there a refund? What is the loss if there is a withdrawal? |
Place, date, signatures | So that everything is formally correct. |
3 What are the opportunities and risks – especially for German buyers?
Opportunities:
You secure a property early on, get time for financing, appraisal, etc.
In new-build projects: Opportunity to select more affordable units, better location/floor etc.
Risks:
Lack of legal provisions – depending on what is in the contract, the contract may offer few options for withdrawal.
If no clear withdrawal clause is included, the reservation fee could be lost.
It may be that not all the necessary documents (building permit, license, energy certificate) are available or checked in the contract – costs or problems could arise later.
4. difference to the Contrato de Arras
Arras contracts are legally stronger: there are legal regulations (e.g. in the Código Civil) and compensation / withdrawal rights are often more clearly regulated.
Reservation contracts are more flexible and often less binding, especially if the seller does not yet have a building permit.
In some cases, a reservation contract is followed by an Arras contract once everything has been clarified.
5. what is the usual reserved amount?
Frequently about 3 % of the total price. Example: Apartment for €200,000, reservation: ~€6,000.
If the project is already well advanced or many details have been clarified, it may be more (e.g. 4-5%), or if handover/signing is planned at very short notice, even only around 1-2%.
6. practical tips for your safety
Always have the contract always have it checked – by a lawyer, ideally German-speaking or experienced with international cases.
Make sure that a withdrawal clause is included and that it is made clear whether you will get your money back or not.
Check whether all the necessary permits and documents are already available – especially for new buildings.
Agree fixed deadlines – how long the reservation is valid for, by when the purchase contract must be signed.
If possible, pay by traceable means (bank transfer) and keep receipts.
Conclusion
A reservation contract is a very practical instrument in Mallorca to secure a property for you as a buyer before all the formalities have been completed. It offers you time and planning security – and often better conditions. But it is not “guaranteed security”: the contents of the contract determine your rights and risks.
If you handle these contracts with care, have them checked thoroughly and all the essential points are defined, you can make your property purchase in Mallorca much more relaxed and secure with the reservation contract.
