Client’s Situation
The client signed a deposit agreement (contrato de arras) and paid a €50,000 deposit for the purchase of an apartment in Valencia. One month later, the seller informed the client that he had decided not to proceed with the sale, as he had found another buyer willing to pay a higher price. The seller offered to return only the original deposit amount, without any compensation.
Legal Issue
The agreement expressly included arras penitenciales. Under Spanish law: if the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double the amount received. The seller argued that the withdrawal was based on a supposedly “justified reason.”
Our Strategy
Conducted a detailed analysis of the contractual clauses. Established evidence of the seller’s unilateral withdrawal. Filed a court claim seeking recovery of double the deposit amount. Requested reimbursement of legal costs.
Result
The court ruled that the seller’s withdrawal was unjustified. The seller was ordered to pay €100,000 (double the deposit). Legal costs were awarded to our client. The client not only avoided financial loss but also received full statutory compensation.
