The urban amnesty for illegal houses rustic land in the Balearic Islands was already announced by the current president of the Balearic Government during the election campaign.
Although it is not known how it will work, rumors suggest that it will be similar to the Company Law approved in 2014.
The local press already takes for granted that the amnesty could come after the next Easter vacations.

What do we know?

1.- That it is not 100% certain that it will be approved and if it is approved, not all illegal constructions will be legalized.
This is essential because since the last elections we are seeing sellers offering illegal houses assuring that “It is certain that there will be amnesty and you will be able to legalize it and it will be worth much more”. Today is only a rumor. It looks like it could happen, but until it is approved, it is not certain.

2.-It seems that it will affect ONLY those constructions that have prescribed /time barred. That is to say, those on which the administration has lost the right to order restitution (demolition).
Prescribed is NOT that it has been built for more than 8 years. That is only one of the necessary elements. Prescribed is that it has been finished for more than 8 years, in general rustic land, not in a protected area and, most importantly, that the administration has not opened a file during that time. The fact that the owner does not know that a file has been opened does not mean that it does not exist.

What do we not know?

The conditions. The company law required the payment of a fee and a fine.
It has been rumored that it could now also require the improvement of the energy efficiency of the buildings.
The owner will have to assess the cost of the works to be done and the benefit to be obtained.

What to do if you have a house on rural land?

As soon as the regulations are approved, time will be of the essence.
In 2014 many people missed the opportunity to legalize their homes.
The most important is to know if your property is out of ordinance or not. Many owners believe that because their house is registered, appears in the land registry and has a certificate of occupancy it is legal. This is not true.

I recommend the property be reviewed by an expert to know if it complies with urban planning regulations. If there is any illegal part, as soon as the regulations are approved, you will be able to immediately take advantage of the regulations.

You want to know if your property has out-of-order parts.
Contact me and I will help you find out.

Contact Now

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Sumary

We will explain the problems that may arise from suggesting this practice, which, as will be seen, goes against article 31 of the Housing Law that came into force in 2023.

Problems of doing a down payment before passing the offer.

No deadline.
Most real estate agencies that force the buyer to pay 1% in advance, make them sign a contract in which seller has no deadline to reply. Once the seller accepts the offer, there is a deadline to sign a reservation or earnest money contract.
However, if the seller takes (for example) two weeks or a month to reply, the buyer has that amount blocked (the 1%) and cannot make offers on other properties. If he does so and the first seller accepts his offer, he will lose the 1% if he does not buy.

Auction
Some real estate agencies use the signed document and the down payment of 1% before passing on the offer to negotiate with other buyers and get a better purchase price.
You make an offer and pay the 1% and that offer is shown to other buyers to increase their offer. They play with your bid behind your back.

Legal point of view for obligating buyer to pay 1% of the price for the agent to pass the offer on to the seller.

There are no regulations governing whether the buyer must pay 1% of the price for the agent to pass the offer on to the seller. The regulations do not regulate these aspects
However, these practices, which oblige the buyer to commit himself quickly before doing due diligence, may clash with existing regulations.

Article 31 of the law 12/2023 of May 24 for the Right to Housing, states that the person interested in the purchase of a property may require, before the formalization of the transaction and the delivery of any amount on account, the information listed below.
This information is never included in the document that the buyer signs so that his offer reaches the seller.

a) Identification of the seller or lessor and, if applicable, of the natural or legal person who intervenes, within the framework of a professional or business activity, for the intermediation in the operation.
b) Economic conditions of the operation: total price and concepts included therein, as well as the financing or payment conditions that, if applicable, may be established.
c) Essential characteristics of the dwelling and of the building, among them:
1.º Certificate or certificate of habitability.
2.º Accreditation of the useful and constructed surface of the housing, differentiating in case of horizontal division the privative surface of the common ones, and without being able in no case to be computed to these effects the surfaces of the housing with height inferior to the one demanded in the regulatory norm.
3.º Age of the building and, if applicable, of the main reforms or actions carried out on the same.

4.º Services and facilities available in the dwelling, both individual and common.
5.º Certificate of energy efficiency of the dwelling.
6.º Conditions of accessibility of the dwelling and the building.
7.º State of occupation or availability of the dwelling.
d) Legal information of the property: the registry identification of the property, with the reference of the loads, encumbrances and affections of any nature, and the quota of participation fixed in the title of property.
e) In the case of protected housing, express indication of such circumstance and of the subjection to the legal regime of protection that is applicable to it.
f) In the case of buildings that officially have architectural protection because they are part of a declared environment or because of their particular architectural or historical value, information will be provided on the degree of protection and the conditions and limitations for renovation or rehabilitation interventions.
g) Any other information that may be relevant for the person interested in the purchase or lease of the dwelling, including aspects of a territorial, urban, physical-technical, heritage protection, or administrative nature related to the same.

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What should the Real Estate Due Diligence in Mallorca contain?

Legal verifications
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.

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Who should do the checks before buying a house in Mallorca?

The answer is the reverse. Who should not do them? Do not let the seller, his agent or an advisor recommended by them, tell you what the state of the property is.

What are the essential checks when buying a house in Mallorca?

Legal status. Mallorca is full of properties with parts built without a license. The consequences of this situation can vary. From never being able to reform them, to receiving a fine or in the worst scenario, a demolition order. Before buying you must know the urbanistic status of the property and neither the seller, nor the agent, nor the notary can guarantee that it is the correct one.

State of encumbrances. Any property may have third party rights.
The most common are mortgages, rights of way, right of habitation, etc…
These encumbrances must be eliminated before buying the property to avoid the transfer to the new owner.

Fiscal charges. The purchase and sale of a property implies the payment of taxes. If the seller did not pay the corresponding taxes when he bought the house, the tax authorities can claim them from the new owner. It is therefore necessary to check that the corresponding payment was made. Similarly, if the seller does not pay the municipal taxes on the sale, the new owner may have to pay those taxes, so it is important to withhold the necessary amounts.

Physical verification.
Must do check before buying a house in Mallorca includes also physical verifications as hot water installations, the state of floors, dampness, windows, etc…

Don’t be tricked into buying a risky property. The authorities in Mallorca are increasing their efforts of prosecuting illegal builds. With this in mind, buying a house without the proper certifications will undoubtedly result in unforeseen consequences. I’m offering you the opportunity to test my expertise with a FREE RISK REPORT of your future property purchase.

The post What to check before buying a house in Mallorca? appeared first on Real Estate Lawyer in Mallorca.

1.- Don’t rush. It’s OK if someone else buys a property in Mallorca that you want to buy. There are thousands of properties for sale and you will be pressured to sign a contract as soon as possible. Rushing is a bad advisor.

2.-Choose YOUR advisor. Don’t let the seller, or the intermediary agent, or anyone else who makes a profit from your purchase, suggest who should advise you on how to buy a property in Mallorca.
Trust me, of all the tips you may hear about buying a property in Mallorca, this is the one that will give you the best result. It is not about whether they are good professionals or not. It is a question of whether they are linked only to you, or whether they also have a link to the seller that prevents them from being 100% on your side.

Let me name some logical facts to take into account when buying a property in Mallorca.

I am sure you have already noticed them, but as I have said before, the rapture for a property takes away our sense.
In Spain you can go to the notary to buy a property and it may be urbanistically illegal, have outstanding debts, hidden defects and don’t expect the seller to tell you.

1.- You don’t know the process of buying a property in Mallorca. Don’t forget that if someone wants to confuse you, they will. So, keep an open eye.
2.- The seller has his best interests at heart. Not yours. You want to buy a property in Mallorca and the only thing the seller wants is for you to buy it as soon as possible.
3.- The intermediary is looking out for his interest or for the interest of the seller who pays him the commission. Not yours.

Don’t be tricked into buying a risky property. The authorities in Mallorca are increasing their efforts of prosecuting illegal builds. With this in mind, buying a house without the proper certifications will undoubtedly result in unforeseen consequences. I’m offering you the opportunity to test my expertise with a FREE RISK REPORT of your future property purchase.

The post Two basic and simple tips for buying a property in Mallorca. appeared first on Real Estate Lawyer in Mallorca.

1.- IF A HOUSE HAS A HABITABILITY CERTIFICATE, IT MEANS IT’S LEGAL.

FALSE. I have heard this statement hundreds of times and it is completely wrong.
First, because the Habitabitability Certificate (Cédula de Habitabilidad) only certifies that the house is suitable to live in.
The confusion arises because if a house is built today, the certificate is not obtained until the promoter obtains the end of the municipal work. This document is issued by the Town Hall after having checked that the house has been built with a licence and that the construction coincides with the licence granted. This means that if it is not 100% legal, it cannot be obtained.
Now then. A house built (even if it is 100% illegal) before 1987 can still have a Cédula de Habitabilidad and will continue to be illegal.
A recently built house can have obtained the Cédula de Habitabilidad and then suffered an illegal transformation and therefore is illegal (and has a Cédula de Habitabilidad).

2.- ILLEGALITIES ARE ONLY A PROBLEM ON RUSTIC LAND.

FALSE. It is true that the biggest problems are on rural land, but there are also illegalities in the urban area.
A sloping tile roof converted without a licence into a plain terrace (which happens frequently) will impede getting a reform licence.
A gallery or closed porch to extend the kitchen is also an illegality.

3.-THE PROPERTY HAS A CERTIFICATE OF NON-EXISTENCE OF AN URBANISTIC INFRINGEMENT FILE. SO, IT’S LEGAL ¡¡¡

FALSE. This certificate is issued by the Town Hall. What they do is look at the computer and certify that there are no proceedings open against that property. But it should NOT be confused with the certificate of non-existence of infringement. This second certificate is issued when the municipal technician visits the house, compares what has been built with the licenses granted and certifies that everything is legal.
Because it is confusing (and has been used to mislead more than one buyer) some municipalities have stopped issuing it and only provide a certificate of current status. This means that they will see the property and certify what is there.

4.-IF THE CONSTRUCTIONS ARE RECORDED IN THE PROPERTY REGISTER, ARE LEGAL

Well, I understand that it seems logical that what is properly registered in the property registry is legal, but it is not.
Until a few years ago anyone could go to a Notary, make an inscription of new work ( called Obra Nueva) stating that they had a house and then the Property Registrar would register it in the Land Registry without asking for a plan or a licence.
In this case, the construction appears today registered and yet it never had a license.

Nowadays it is not so easy anymore; when someone goes to the Notary to declare a new building and does not have a license, the Notary warns in the deed of the lack of license. The property registrar informs the administration that a construction without a licence has been registered.
If the construction is more than 8 years old and the right to order demolition has expired, it is registered and the authorities do nothing because they can no longer do so.
A house that is illegal is registered.

5.-LEGALIZED BY THE LAPSE OF TIME. PRESCRIPTION IS THE SAME AS LEGALITY.

This is my favorite and it’s related to the last one. The prescription.
The administration loses the right to order restitution to the current state (demolition if not legalizable) after a few years.
But this does not mean that the construction has been legalized by the passage of time.
It is illegal but the administration cannot order demolition. Perfect, isn’t it? No, it’s not. You will never ever get a license to reform something illegal. So it will either fall down or have to be repaired or renovated without a license. At that point the prescription period starts counting again.
Since 2018, illegal constructions on rural land are no longer subject to the statute of limitations. Never.

6.-EVERYTHING BUILT BEFORE 1956, IS LEGAL

That’s not true.
What happens is that everything built on rustic land before 1956 is legal even if it is in a protected area (where the use of housing is not allowed) or the minimum plot to build is not met.
However, uses cannot be changed even if the volume is legal. A stable or storage room, even if built before 1956, is a stable or storage and cannot be transformed into a dwelling. If this is done without authorisation, the use is not permitted.

7.-ANY HOUSE BUILT ON A RUSTIC PLOT OF LESS THAN 14,000 SQUARE METERS IS ILLEGAL.

This is not true either: 14,000 metres is the minimum plot but there have been transitional rules which at certain times allowed licences to be issued. 
On the other hand, for some years a law called the amnesty, allowed to legalize all those constructions built without license that did not have open files of infraction. Therefore, a house built on a plot of land of less than 14,000 meters could have been legalized during this period. 

Apart from what has been explained. Any construction on a rustic plot of less than 14,000 square meters is highly suspected of being illegal and only by checking the licenses can one know. 

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To buy a property in Mallorca (or elsewhere in Spain) you need to get a NIE number.

As you can see process it is easy but can take time.
That’s why my advice is not to leave it until the end. NIE number will last forever and if you do not use it will not imply any obligation. As soon as you decide that you are going to buy something in Spain, be it a property, a vehicle or anything else, start the process.

From the beginning of 2020, NIE numbers can no longer be applied through the Law Association.
Now to obtain a NIE you must do so in one of the following ways:
1.- Spanish Consulate in your country of origin
2.- Directly in a Spanish police station
3.- Through a representative.

In case you can’t or don’t want to go to the consulate or stand in line at the police, with a representation we can arrange your NIE number.

Who can order the NIE number in Mallorca?

Foreigners who, because of their economic, professional or social interests, are related to Spain, may get, for identification purposes, a personal, unique and exclusive sequential number.

What is the NIE number?

The personal number shall be the foreigner’s identifier, therfore must appear on all documents issued or processed, as well as the formalities stamped on his identity card or passport.

How to apply for the NIE number in Mallorca?

A) In person at the police offices

B) Through a representative

Documents required to apply for NIE

1.- This application duly completed and signed

2.- Original and copy of the complete passport, or identity document.
Written explanation of the economic, professional or social reasons justifying the NIE application.

3.- Power of attorney of the representative to request it.

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