The Arras contract contains the initial terms of a property purchase agreement. When the buyer signs, they usually pay a percentage (circa 5%-10% though subject to negotiation) of the purchase price as a deposit, thus the buyer should be ready to acquire the property at a later stage.
If it is finally decided not to buy, that upfront payment cannot be recovered. If the seller wants to back out after the arras contract is signed, they must pay double the deposit.
The purpose of this agreement is to bind both parties to the final deal and book the property in the buyer’s name since the seller cannot sell the property back to anyone else, unless the previously-outlined penalty is paid.
You can find out more no-commitment advice by contacting PENA FRAGA LAW FIRM below.