What is a deposit agreement in Madrid and how can you protect yourself when buying a home?

If you are about to buy an apartment in Madrid, the next step will most likely be signing a deposit contract.

Although it is often seen as a simple formality, it is actually the document that defines the terms of the transaction: price, deadlines and conditions.

Types of deposits

• Penitential deposit: allows withdrawal with penalty.
• Confirmatory deposit: reinforces commitment.
• Penalty deposit: includes a contractual penalty.

Amount paid

The deposit is typically around 10% of the price, although this may vary depending on the transaction.

Key clauses

• Identification of the parties
• Property description
• Price and payment terms
• Signing deadlines
• Status of charges
• Conditional clauses

Common risks

• Not checking charges
• Not identifying annexes
• Unrealistic deadlines
• Incorrect deposit type

Deposits in luxury real estate

In prime transactions, documentation accuracy is essential: building inspection (ITE), community, works and overall condition.

What to do before signing

• Check the land registry extract
• Review the community
• Confirm financing
• Verify inventory

Achetez votre nouvelle résidence

How BARNES Madrid supports you

At BARNES Madrid, we support you throughout the entire buying process, ensuring that the deposit contract protects your position.

We welcome you at 15 Velázquez (Barrio de Salamanca). BARNES Madrid.