The process of buying a property in Mallorca has different parts.
Although with more or less difficulty the buyer can do it by himself it is advisable to hire the services of a lawyer specialized in buying and selling that is completely independent of the seller or the agent who works for the seller.
Find and choose the property you want to buy.
How?
-Walking around the island, looking for posters advertising properties for sale and contacting the owner directly.
-Through a real estate agency that advertises properties for sale.
The second method is the most common. In the first case the owner will be willing to lower the price since he does not have to pay the real estate (between 5 or 6% plus VAT).
Obviously if you don’t have time to go around the island looking for properties for sale, the most advisable way is through a Real Estate Agency..
Check the state of charges and legality of the property you want to buy.
Once we have chosen the property that you are going to acquire you have to be sure that it is free of charges.
On a property there may be mortgages, community debts, liens or other charges.
It is necessary to know what they are and, before signing any commitment, it is necessary to make sure that the seller will liquidate them before transmitting the property to you.
Legality. Unfortunately in Mallorca it has been allowed for years the construction and reform of houses in both rustic and urban land without license. The authorities have recently decided to put an end to this practice. It is therefore essential to have a thorough knowledge of the legality of the property before buying it. Unfortunately neither the seller nor the agent will tell the truth. You have to find out for yourself before you sign the deed of purchase.
Make a binding offer
Buying a property in Mallorca can be done in two ways.
- Call the seller to the Public Notary, pay the price and sign the deed of sale.
- Signing a purchase option contract that gives the buyer a period (normally two months) to sign the deed of sale. During this time the seller can gather all the necessary documentation and the buyer can prepare the funds.
This method is the most common and the purchase option contract should contain all future obligations of the parties. At the signature is given the option premium which is normally 10% of the price. The defaulting party will lose that amount.
Obtain the NIE number
The NIE is the Foreigner Identification Number. It is necessary to acquire a property in Spain.
Bring the money to Spain.
There are no restrictions on buying property in Mallorca or the rest of Spain, but in 99% of cases the seller wants to cash a bank cheque from a Spanish bank.
This is why it is important to foresee how the money will arrive in Spain, open an account in a Spanish bank and have enough time for the funds to reach their destination.Get a mortgage.
If you want to finance your purchase, you can do so. The process of applying for a mortgage, valuing the house and signing all the necessary documents can take between a month and a half or two months.Sign the deed of sale.
The deed of sale is signed in front of a Public Notary
Once signed you will become the new owner.
After the sale.
Pay taxes that will be different depending on whether it is a new or second-hand property.
Register the property in the Land Registry and Cadastre
Change supplies so that receipts are debited from your bank account.
Inform the community of owners, if there is, that you are the new owner.
Pay annual fees.
