Arras

Amount the buyer hands to the seller when signing the pre-contract of sale, as a deposit and guarantee that the deal will close. Around 10% of the price is usual. There are three types, and the difference matters: penitential arras (article 1454 of the Civil Code) allow either party to walk away — the buyer losing what was paid, the seller returning double; confirmatory arras are just an advance on the price and give no right to withdraw: the other party can demand completion; and penal arras fix compensation for breach. The classic trap: if the contract says only 'arras' with no surname, courts treat them as confirmatory. Whoever wants an exit must write 'penitential arras' expressly, and agree the deadline for the deed, the closed price and what happens if the mortgage does not come through.