Arra – within the sphere of Law of Contracts, the term is used to detail an advance payment, usually implemented in preliminary contracts for off-plan property purchases. Usually, the buyer makes this payment as per the reached stage of completion. Its role is to secure that the money will go into the construction process. On the other hand, the seller has a security that the buyer intends really to complete the purchase.
A synonym is the term “earnest payment”.
Example: “The buyer will make an arra payment towards the developer in the amount of 30 000 dollars, in a week time after signing the private purchase contract”.
