I have been informed by my Spanish Lawyer and by my Spanish Estate Agent that upon signing contract to purchase that the 10% deposit is to be released to the vendor, before the final completion act with the notary public for payment of the balance (90%) of the purhchase price.
My feeling is that the 10% deposit should be held to the benefit of the vendor in escrow (not cash in hand) until final completion.
Effectively, between the time of the private contract - until the final completion, the vendor has "spent" the 10% deposit.
My only legal recourse, should the vendor, in the unlikely event, not proceed to final completion, would be to recover double the deposit (20%) by legal means..
The 10% if it was held in escrow, is easier (tangible) to reclaim if it has not already been spent by the vendor in the interim period.
My concern, albeit obtuse is:- that the vendor could take potentially, multiple deposits and not complete on any of them! - Whilst highly unlikely, it does appear to be a potential loop-hole in the Spanish real estate legal system! ???