Congratulations. You have finally found your dreams property in Mallorca and now it is time to get it.
Probably the seller has told you that you have to close the deal as soon as possible.
90% of the people who contact me have been assured that there is someone else interested in buying the house of their dreams. Sometimes it’s true often it is not.
Remember: In this adventure rush is your enemy.
Let’s see the BASIC RULES ABOUT BUYING A PROPERTY IN MALLORCA
Note this rules are the same in all the Country.
-DEPOSIT TO BUY A PROPERTY IN MALLORCA.
Probably vendor or Real Estate Agent will recommend you sign an Option Contract as soon as possible. They will promise this is to be sure nobody else can buy the same property you are willing to buy.
Don’t play this game. Trust me; they ALWAYS say there is “another couple interested o the property” so “If you don’t sign now you will loose your dream’s property”
Offer only a €1000 to €4000 deposit to hold the property for a few days or a week and to prepare a Option Contract.
If they accept, vendor has to commit to keeping the property off the market for that time; the deposit you pay for this will be part of the Option Contract you are going to sign. If the vendor does not agree go to the next point.
IMPORTANT: The document has to be very short saying only
a) You pay a deposit
b) They take the property out of the market for a few days
c) Price of the purchase
IF THEY TRY TO INTRODUCE OTHER ELEMENTS, DON’T SIGN IT
So many times vendor introduce introduces clauses in the deposit contract that in the future will block the negotiation of the purchase option. Let’s say they introduce a clauses saying you gonna accept the fiscal and juridical situation of the property, (and ma be it’s 100% ilegal), or a clauses saying vendor only will deliver Efficiency Certificate when you sign the purshase deed (So you won’t be able to demand the Habitability Certificate or other important documents that are essentials for you)
.-THEN IT’S TIME GET INDEPENDENT ADVICE (from a Lawyer): May be Real Estate Agents is efficient and honest, but his /her main objective is to sell properties before other agents can do the same. Don’t forget they get their commission from the vendor and not from you. So, If you want to be safe, look for someone who has no other interests than yours.
Hire a lawyer who is established in the local area with contacts there. There is no sense hiring a lawyer in Madrid if you are buying a property in Mallorca, as has no sense to hire a Lawyer in Mallorca to buy a property in Barcelona. Also you need a lawyer who does speak Spanish ond Catalan to deal with the locals and neighbours in rural areas.
What lawyer will do for you?.
-FISCAL IDENTIFY NUMBER IN MALLORCA, CALLED NIE.
To buy a property you must have your Fiscal Identify Number because without it you cannot pay taxes. You lawyer will apply for it
Due sometimes takes long, it is advisable to start this process as soon as possible.
-THE OPTION CONTRACT TO BUY A PROPERTY IN MALLORCA:
Your lawyer will prepare the Option Contract. This document –which will be binding for vendor and purchaser – will establish the condition and terms of the deal.
Lawyer will deal with vendor lawyer in order to agree a Contract that satisfy both parties
Before to sign the OC lawyer has to check:
a) Ownership of the property. This will be done checking the Property Registry.
Property Registry will also show if there is any third person who has a right to this property. Let’s say, use, right of way, ore usufruct among others.
b) Legality of the property. In Mallorca lots of properties, are 100% illegals or have some parte out of order.
In other to avoid you buy a problem (instead of your dreams property) your lawyer will ask the vendor to prove the legality. So many times they don’t want or can not do it. So Lawyer has to investigate as deep is possible to be sure purchaser is buying a legal property.
Mallorca’s authorities are fighting against illegal properties and future it’s getting dark for owner’s of that properties. Note Illegalities are also in urban areas. May be your house in town could have an illegal room.
c) Debts. Lawyer will check whether the property has any debts with institutions (taxes), mortgages or if vendor it’s not up to date on the payments with the Community of Owners. Once you became owner you are responsible for the debts from the previous three years.
d) Price of the property: If you want to be sure your Lawyer can provide you with a valuation report.
CONTENT OF THE OPTION TO PURCHASE CONTRACT
Lawyer will prepare a contract outlining the terms and conditions of the future sale. Vendor will commit himself to deliver all the necessary documents to prove there are no debts, ownership, and any other document mandatory or useful to the purchaser This contract will establish the purchase price and date of completion, as well as setting up what will happen in case any party does not fulfills the terms of the Option to Purchase Contract.
Your lawyer has to find the way to guarantee the return of the option premium if vendor does not fulfill the terms.
Then, and only when the Option Contract is signed, purchaser, soy you, have to pay the option price. This usually it is 5 or 10% of the purchase price.
-PURCHASE DEED WHEN BUYING A PROPERTY IN MALLORCA:
Full price is paid on the moment to sign the deed in front of a Public Notary. If price has been already paid receipt has to show to the Notary. Then purchaser becomes owner.
AFTER THE PURCHASE
Deed must be sent to the Property Registry and Cadaster, and then you will be entered as the new owner.
.-Community Owners invoices, supplies contracts, insurances etc.. has to be domicile to you bank account in order to pay the bills.
Taxes and expenses
Buying a property in Mallorca, means pay taxes and expenses.
Toni Marqués. Real Estate specialist
Don’t hesitate to contact me for free information. +34 678 216 706 email@example.com