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When the Security Deposit Becomes a Dilemma: Arras, a Berlin Court and a Mallorca Villa

What Happens to a Mallorca Property Deposit If a Deal Falls Through?

Find out when a Mallorca property deposit can be lost and why Arras clauses matter if a deal is cancelled.

Published: April 22, 2026
When the Security Deposit Becomes a Dilemma: Arras, a Berlin Court and a Mallorca Villa

Answer

Can a Mallorca property deposit be lost if the buyer cancels?

Yes, depending on how the deposit agreement is written. In Spain, an Arras clause may mean that a buyer who withdraws loses the deposit, while the seller may have to repay double if the seller cancels. The exact legal effect depends on the contract language, so it should be reviewed before signing.

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