A real estate market with constant changes and fast transactions, imposes the need to perform a complete real estate due diligence to buy a property in Mallorca.
Although sellers and real estate agents should inform the seller of the real situation of the property, the truth is that every day properties are bought and sold with encumbrances and encumbrances, especially with parts out of management in rural land.
What should the Real Estate Due Diligence in Mallorca contain?
The buyer’s lawyer should make sure that:
-The seller is the owner and can dispose of the property. A seller can have the bare ownership, but not the possession. There may be third party rights
-That there are no mortgage or other encumbrances. If there are any, establish a cancellation mechanism by retaining sufficient amounts to avoid expenses to the buyer. Only the previous real estate due diligence will make it possible to establish the guarantees and retentions in the contract.
-That the property has no debts. The debts are not only reflected in the registry documents. Annual taxes or community of neighbors.
-Legality of the construction. Mallorca is full of properties built without license or with parts added after the license. This can result in a demolition order or never being able to reform or fix them. Only a deep real estate due diligence of the property you are buying, with show those problems.
-In addition the Due Diligence must contain the information of expenses related to the purchase (taxes) and annual expenses of the property.
Physical verifications in a proper real estate due diligence in Mallorca
The buyer’s lawyer on the other hand will provide if necessary a technical report (by an architect or quantity surveyor) that verifies the correct functioning of the property.
During this real estate due diligence, the measurements of the property will also be checked and this is the best way to detect illegal extensions.
It will be verified that the squares reflected in the certificate of occupancy coincide with reality.
Pathologies that do not appear in the papers and documents will be checked.