Arras (Earnest Money)AH-rahs
Arras is a deposit paid when signing a preliminary purchase agreement to demonstrate the buyer's commitment and reserve a property, typically 5 to 10 percent of the purchase price. Mexican law recognizes arras contracts under general civil-code contract principles, though no specific statute defines the term.
By Daniel Ortega · Last reviewed 7 November 2026
How it works
In Mexico real estate transactions, arras is paid when both parties sign a preliminary agreement (contrato de promesa de compraventa). The most common type, arras penitenciales (penitential earnest money), permits either party to withdraw: if the buyer backs out, the seller keeps the arras; if the seller backs out, the seller must return double the amount. Arras confirmatorias (confirmatory) are binding and simply applied to the final purchase price. The deposit typically ranges from 5 to 10 percent of the agreed price and is held by the notary, the listing agency, or—safer for foreign buyers—a U.S.-dollar escrow account with a title company. The arras is credited against the purchase price at closing, which usually occurs 30 to 45 days after the offer is accepted. Arras differs from apartado (a small reservation fee to hold a property briefly) and enganche (the down payment applied at closing).