A refused mortgage does not always have the same consequence. The answer depends on any financing condition, the type of deposit agreed and the civil law governing the transaction. Catalonia has a specific rule; other cases require examination of the contract and the circumstances.
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Before the deadline: collect the contract and lender’s decision
Find the latest signed reservation agreement, deposit contract (arras) and amendments, proof of every payment and the date set for signing the deed. Ask the lender for a written reply identifying the transaction, the application and the reason given. Keep emails from the estate agent, seller and mortgage intermediary. If an extension was agreed, retain its acceptance: an unfinished conversation does not establish that the deadline changed.
Explain whether the problem is an outright refusal, a low valuation, an offer for less money, a condition you cannot meet or a refusal to let you take over an existing mortgage. These are different situations. Also check whether you applied in time and supplied the documents requested: the parties’ conduct can affect how a clause or legal rule applies.
Not every deposit can be forfeited or returned twice over
Article 1454 of Spain’s general Civil Code provides for withdrawal by forfeiting the deposit or returning double where the relevant arras penitenciales agreement exists. It does not make every reservation fee or advance payment an option to walk away. A payment confirming the contract, a penalty clause and a deposit expressly permitting withdrawal have different effects.
Read what the document actually says about financing, refunds, breach, penalties and completion of the sale. If the purchase depends on obtaining a loan, check the required amount or percentage, the lender, the application deadline, how refusal must be proved and when it must be notified. Do not assume a condition the parties never accepted, or overlook one recorded in an amendment.
Catalonia’s specific financing rule
Unless otherwise agreed, article 621-49 of the Civil Code of Catalonia allows a buyer to withdraw where the sale provides for financing by a credit institution and, within the agreed period, documentary evidence shows that the designated institution refused the loan or refused to accept the buyer’s subrogation into the existing mortgage. The rule includes an exception where refusal results from the buyer’s negligence.
A listing in Barcelona or an email from any bank is therefore not enough on its own. The applicable civil law, the contract and every statutory requirement must be checked. Book Six also governs deposits: their nature and effects must be read alongside the financing provision, rather than treating them as interchangeable standalone rules.
Options worth considering
- Rely on an agreed financing condition: where its requirements are met, document the request and the consequences sought.
- Agree an extension: record the new date, the treatment of the deposit and the conditions in writing. Do not assume the seller’s silence amounts to agreement.
- Renegotiate: consider the price, payment schedule or other financing without taking on obligations you cannot meet.
- Withdraw or bring a claim: first identify the legal basis, recipient, deadline and consequences.
- Respond to a seller’s claim: check what is demanded, the supporting evidence and the agreed terms on completion or penalties.
A claim against the seller is separate from possible liability of the estate agent or mortgage intermediary. Assessing the latter requires knowing what each person promised, what service they provided and which document or payment connects their conduct with the alleged loss. A failed mortgage application does not by itself establish professional negligence.
Build a useful timeline
Put the signing date, deposit payment, submission of documents to the lender, valuation, decision and contractual deadline in order. Keep evidence of each communication. If refusal was verbal, ask for confirmation. If you only have an initial illustration, make clear that it was not final approval. Separate payments to the seller from third-party commissions and expenses.
Your notice should state what you are asking for: a refund, an extension, clarification or application of a particular condition. The property-document request template (Spanish) helps collect the background, but it is not a withdrawal notice and does not automatically interrupt every deadline. A general template may be unsuitable if the seller has already demanded completion or signing is imminent.
Worked example: the lender offers too little
A buyer pays a €15,000 deposit and plans to borrow 80% of the price. After the valuation, the lender offers a smaller loan. The contract says “subject to financing” but does not explain what happens if the amount offered is insufficient. Before accepting that the deposit is lost, the clause must be interpreted with the other documents to establish what was agreed and what can be proved.
In another purchase, the contract might specify the lender, a minimum amount, the evidence required and the notification deadline. Those requirements would be the starting point. Both buyers need to retain the bank’s decision, but they do not necessarily have the same rights or strategy. The size of a deposit does not, by itself, determine its legal nature.
Choose the next step for your situation
Before signing, request a review of the deposit and financing terms. If a dispute over the deposit already exists, request an assessment of the contractual dispute. Before civil proceedings, the applicable prior-negotiation requirement, its exceptions and its effect on deadlines must also be checked. An informal message does not always provide the necessary evidence.
Tell the firm the nearest deadline and provide the complete documents. We can assess negotiation, a formal notice or a claim and confirm the professional, availability, scope and quote before you accept an engagement. An initial assessment is free; a refund cannot be guaranteed without examining the agreement and evidence.
Frequently asked questions
Does mortgage pre-approval mean the loan has been granted?
Not necessarily. Check its conditions and the final decision. Keep the exact offer or communication: an illustration is not the same as a binding final commitment.
Does a low valuation always entitle me to a deposit refund?
No. It depends on the agreed condition, the intended financing, the applicable civil law and the evidence. Establish whether there was a refusal or an insufficient offer and what consequence the contract provides.
Can I wait until the seller makes a claim?
Letting the contractual date pass without reviewing the position can be risky. You may need to make a request or exercise a right within the agreed period and prove receipt.
Official sources and scope
Official legislation linked below is in Spanish.
- Spanish Civil Code: article 1454 (deposits permitting withdrawal) and article 1124 (performance or termination for breach).
- Civil Code of Catalonia: article 621-8 (deposits) and article 621-49 (third-party financing).
- Organic Law 1/2025: article 5 (prior requirement and exceptions), article 7 (effects on deadlines) and article 10 (evidence of negotiation).
General legal information, adapted from the Spanish guide whose stated editorial and source review is dated 28 October 2026. The contract, dates, applicable law and case documents determine the next step.