If you intend to purchase a property in Majorca from a foreign country like England or Germany, you should consider that both the jurisdiction and the processes to be carried out and the roles of professionals involved in it are different.
Buying a property in a foreign country can be a complicated affair and fraught with formalities and obligations that the purchaser might be completely unaware of until it is possibly too late. The process of buying a Spanish property is the same for all stages involved: from the initial acceptance of your offer through to the final and all-important transfer of ownership, as well as the registration of the property. It is important for both parties to have an independent solicitor.
That is why we want to offer you some of our recommendations when purchasing your property in Mallorca:
- Advice and assistance will be given to obtain a Spanish ID no (called a NIE).
- Negotiate, amend and finalise the terms and conditions of the purchase contract
- Conduct a land registry search to ascertain the official owner, the description of the property; whether the building is registered and whether there are any charges attached to the property, such as a mortgage, easements or positive/negative covenants.
- Search at the local council planning department to discover whether the building itself has a building license/permit. Ascertain whether the described property surface area at the land registry is covered (or is in accordance) with the local council license/permit. Search at the habitation department to see if the property has a certificate of habitation.
- Search at the cadastral registry to confirm the cadastral value.
- In case of urban apartment, confirm any communal obligations and also ensure that the seller has an updated record of community charges.
- Verify whether or not all General and Local taxes have been paid up to date.
- When your attorney draws up the Purchase Option Agreement, the property is formally reserved for you while you carry out the legal and financial proceedings. The sale of a property can be carried out by several real estate agents, for this reason it is very important that you reserve the property when seller and buyer agree a price.
- Completion of the transaction before a Notary Public. A notary public is a Spanish Public Servant who certifies the capacity of the parties and the content of the title-deed (escritura).
- After signing and the completion of the deal, Property Transfer Tax (ITP, currently a progressive tax from 8 to 10%) has to be paid to the Balearic Islands Tax Authorities within 30 days of completion, in accordance with a general tax rule. VAT (IVA in Spain) might also be applicable in other types of transactions.
- Formally notify the utility companies (electricity, water, etc) of the change of ownership and organise payment arrangements with your Spanish bank.
As a specialist in Real Estate Law in Mallorca, we offer comprehensive advice in the process of buying and selling property.
- Condominium
- Urban and rural leases.
- Real estate, such as purchases, swaps, options, deposits, establishment of real estate companies.
- Management of deeds, pay real estate taxes resulting from transfers, Registration of Property.
- Check charges, easements, security interests. Ownership.
Our team is committed to providing the best work processes to provide our customers with the best results, in a constant quest for professional excellence. We establish external collaboration when circumstances require and are firmly committed to transparency and honesty in our actions.
