Why We Avoided a Frontline Beach Property in Spain Before Signing the Arras Contract

In this case study, I explain how I helped a Romanian buyer avoid a potential long-term risk when considering a frontline beach property in Spain.

The buyer wanted to purchase a property in first line to the beach using a Spanish mortgage. Before signing the arras contract, we reviewed the situation with the lawyer and identified a possible risk connected to Spain's Coastal Law, known as Ley de Costas.

The property was attractive, well located and not necessarily a problem for immediate use. However, because of its age, beachfront position and potential legal restrictions affecting parts of the Spanish coastline, we decided not to continue with the purchase and to look for a safer property instead.

Key facts

• Buyer profile: Romanian buyer
• Purchase objective: frontline beach property in Spain
• Financing: Spanish mortgage
• Main attraction: first line to the beach
• Main risk identified: possible future limitations connected to Spain's Coastal Law
• Property type: older building in a beachfront position
• Stage reached: before signing the arras contract
• Decision: not to proceed with the purchase
• My role: mortgage pre-check, property risk review, coordination with the lawyer and buyer protection

The buyer's situation

The buyer wanted to purchase a frontline beach property in Spain with a Spanish mortgage.

Before searching seriously and making offers, we first checked the financing side. This is very important for buyers who need a mortgage, because the bank's maximum approval amount determines the real buying budget.

For a buyer using bank financing, the process should not start only with property visits. It should start with a realistic understanding of:

• how much the bank may finance;
• how much deposit the buyer must bring;
• how much cash is needed for taxes and costs;
• what type of property the bank may accept;
• whether the buyer's income and documents are strong enough for the mortgage.

Once the mortgage possibilities were clearer, we searched within the buyer's realistic price range.

The property looked attractive at first

The buyer found an excellent property in first line to the beach. From a normal buyer's perspective, it looked like a very strong option:

• frontline beach location;
• very attractive position;
• a rare type of property;
• strong emotional appeal;
• good lifestyle value;
• exactly the type of property many foreign buyers dream about.

However, properties in first line to the sea must be checked very carefully in Spain, especially when the building is older. In this case, the building was old and located in an area potentially affected by Spain's Coastal Law.

What is the Ley de Costas risk?

Spain's Ley de Costas regulates and protects the maritime-terrestrial public domain and the coastal areas close to it. The official coastal delimitation procedure, called deslinde, identifies which land belongs to the maritime-terrestrial public domain and which private properties may be affected by limitations near the coastline.

This does not mean that every beachfront property in Spain is problematic. Many frontline properties are perfectly legal and can be bought and sold normally.

But some older buildings close to the beach can be affected by restrictions, concessions, limitations on works, uncertainty about future renovations or potential complications for resale and mortgage financing. The purpose of coastal delimitation is to clarify which assets are public maritime-terrestrial domain and which private assets are affected by limitations, so that inappropriate uses or occupations can be avoided.

For this reason, a buyer should never assume that a first-line beach property is safe only because it has a beautiful view.

Why the risk mattered in this case

The problem was not necessarily immediate. The buyer could have bought the property and used it. But the concern was long-term risk.

Because the building was old and located in a frontline beach position, there was a possibility that future restrictions could affect:

• resale value;
• mortgage availability for a future buyer;
• renovation or consolidation works;
• legal certainty;
• the long-term security of the investment.

This was especially important because the buyer was purchasing with a Spanish mortgage. If the property later became harder to sell, or if future buyers could not obtain bank financing because of coastal-law concerns, the client could be left with a problematic asset while still having a mortgage obligation.

That is not a risk to ignore.

What we did before signing the arras contract

Before signing the arras contract, we discussed the situation with the lawyer.

This step was crucial. The arras contract is not just a simple reservation. Once signed, it can create financial consequences if the buyer later decides not to continue.

Instead of rushing because the property looked attractive, we stopped and reviewed the potential legal and long-term risk. The lawyer's input helped clarify that the property was not the safest option for this buyer's situation, especially because the buyer wanted to purchase with a mortgage and avoid future resale problems.

The decision: we walked away

After reviewing the situation, we decided not to sign the arras contract. This was the right decision for the buyer.

The property was attractive, but the risk was not aligned with the buyer's objective. A buyer using financing needs not only a beautiful property, but also a property that is legally clear, bankable and easier to resell in the future.

We continued searching for a property that did not fall under the same type of coastal-law concern.

My role as a buyer's agent

My role was not to push the buyer to buy quickly. My role was to protect the buyer's interest. In this case, that meant:

• checking the mortgage possibilities before the search;
• identifying that the property required deeper legal attention;
• involving the lawyer before signing arras;
• explaining the difference between immediate use and long-term risk;
• helping the buyer avoid a potentially unsafe decision;
• continuing the search for a safer property.

Sometimes the best advice a buyer's agent can give is not "buy this property", but: "Be careful — this may not be the right property for you."

Key lesson for foreign buyers

A frontline beach property in Spain can be attractive, but it must be checked carefully before signing any contract.

Foreign buyers should be especially careful when the property is:

• in first line to the sea;
• in an older building;
• close to the maritime-terrestrial public domain;
• potentially affected by coastal restrictions;
• being purchased with a mortgage;
• intended as a long-term investment or future resale asset.

The cheapest or most beautiful property is not always the safest one. Before signing an arras contract, the buyer should understand not only the price and view, but also the legal situation, mortgage risk, resale potential and long-term security.

Every property and coastal situation is different, so a lawyer should always confirm the specific legal status of a property before signing any contract.