This article is part of our Deep Dive podcast series, where Franke & de la Fuente go beyond the standard guides to talk about real cases, real challenges, and real answers for international buyers in Spain. In episode 2, “Making an Offer & Reservation Contracts on the Costa del Sol Explained,” Managing Partner Peter Franke sits down with Raquel Parrado, Senior Associate at our Estepona office, to break down what happens once a buyer finds their dream home.
Once you’ve done your homework on financing, residency, compliance, and taxes, and your real estate agent has helped you find a property you love, it’s time for the next step: making an offer. But before you sign anything, there are a few critical things every international buyer should understand about the Spanish property market — particularly here in Andalucía and along the Costa del Sol.
Know What You’re Actually Buying
Before making an offer, it’s essential to have a clear, general overview of the property. This starts with an in-person or online visit, arranged through your real estate agent, who should also provide key background information: location, included elements, prior agreements, and the seller’s specific conditions.
It also matters what kind of property you’re buying. As Raquel Parrado explains:
“This matters because, first of all, tax implications will be different in each scenario, and also because the due diligence that will have to be endured will be also different.”
— Raquel Parrado, Senior Associate
A resale property, a new development, a plot, or a commercial unit each come with different tax implications and different due diligence requirements. Knowing this from day one shapes the entire conveyancing process.
What’s Included in the Property?
One of the most overlooked — and most commonly disputed — questions is: what exactly is included in the sale?
- Furniture: Is it part of the purchase price, or priced separately?
- Storage and parking: Buyers are sometimes told a parking space is included, only to later discover it’s a right of use rather than actual ownership.
- Terraces: Similarly, a roof terrace may not appear on the title deed — it may only be an inherited right of use.
Sellers themselves don’t always have full clarity on what they’re selling, especially without a representative or real estate agent involved. As Peter Franke puts it:
“When we are talking about what’s included in the property, it’s pretty — it’s good, right, if we have as clear information as possible from the very beginning.”
— Peter Franke
This is exactly why thorough due diligence — before signing any reservation agreement — is essential to protect the buyer early in the process.
Rental Intentions and Physical Condition
If you plan to rent the property short-term or long-term, this needs to be communicated to your real estate agent from the very beginning. Not every area on the Costa del Sol permits short-term rentals, so this consideration should shape your property search from day one — not after you’ve made an offer.
The same applies to the physical condition of the property. Unlike in many countries, a technical inspection is not mandatory in Spain — it must be negotiated. Buyers should decide upfront whether they want an inspection, who pays for it, and what the legal consequences will be depending on the outcome.
The Reservation Contract: A Local Tradition
The reservation contract is common practice in Andalucía (and much of Spain), though it’s less familiar to buyers coming from other countries. Raquel Parrado describes it as:
“An agreement where both parties express what has been agreed in prior conversations to the signing of this document. It will state the conditions that need to be met when proceeding to the next steps, which is the private purchase contract, and also even when proceeding with completion.”
— Raquel Parrado, Senior Associate
It functions similarly to a letter of intent: the buyer expresses a genuine intention to purchase, subject to specific conditions being met. A reservation contract typically includes:
- Price and payment terms
- Land registry and property information
- Key dates and the notary involved
- What is included in the sale
- Any special conditions agreed by both parties
Because full information about a property isn’t always available upfront, the reservation contract acts as a contractual safeguard — allowing the transaction to move forward securely while outstanding questions are resolved through due diligence.
Why the Deposit Matters
Signing a reservation contract typically involves a deposit. As Raquel Parrado explains:
“The deposit is a show of good faith mainly, and also to reserve the property under your name. It will give then more seriousness to the matter, and it makes it binding to both parties.”
— Raquel Parrado, Senior Associate
This is also why the preparation covered in our first Deep Dive episode — financing, immigration, compliance, and taxes — matters so much. The more prepared you are before this stage, the more effectively the reservation contract can protect your interests.
Special Conditions: Where Legal Advice Matters Most
The reservation phase is often where legal representation makes the biggest difference. The Spanish property market lacks full transparency around competing offers, which can create pressure on buyers to move quickly. Taking the time to properly draft special conditions can prevent misunderstandings later in the process.
A common example is the technical inspection. As Raquel Parrado notes:
“The difference will be the outcome of the report and the transaction. It’s very important to appoint a technical inspector that is duly registered in Spain.”
— Raquel Parrado, Senior Associate
Peter Franke adds why the quality of that report matters so much in negotiations:
“If the seller’s representative will view this report and they see this is not worth the ink, you know, that it’s written on, you will be in a weak position.”
— Peter Franke
A duly registered, professional technical inspector produces a report that carries real legal weight — one that can be used to negotiate repairs, price adjustments, or even withdrawal from the transaction if serious issues are found. An informal inspection by an unqualified person offers far less protection and weakens the buyer’s negotiating position.
Key Takeaways for Buyers
- Get as much information as possible about the property — its type, what’s included, its physical condition, and its rental potential — before making an offer.
- Involve legal counsel early, ideally before or during the reservation contract stage, even if your agent already has a template.
- Use professionals for technical inspections to ensure any findings hold weight in negotiations.
- Understand the reservation contract as a protective tool, not just a formality — it’s where your specific conditions are legally documented.
Whether you’re preparing to make your first offer in Marbella, Estepona, or elsewhere on the Costa del Sol, having the right legal guidance during the offer and reservation stage can save you significant time, money, and stress later in the transaction.
Watch the full conversation between Peter Franke and Raquel Parrado in Deep Dive episode 2, “Making an Offer & Reservation Contracts on the Costa del Sol Explained,” available here.
