Property Buyers Guide in Mallorca

Buying a Villa in Mallorca. Quick Guide to Buying a Property in Mallorca

NEGOTIATING THE PRICE
Once you have find the property that matches your requirements the next step is to pass on an offer to the real estate agent. If you have decided to buy with Balearic Properties, our property experts will negotiate your offer with the vendors of the property and try to get it through. In the current situation price reductions are normal to find, and you can find real good opportunities but be carefully to miss them as they can go in the same day when they come on the market for sale.Price is agreed. Now the next step is to check all the legal situation of the property. This can be done by searches in the Land Register, Townhall and original title deeds (Escrituras). Its is normal in this case to instruc a solicitor to do the searches and draft the contract to secure the property. Please feel free to ask our recommended english speaking solicitors in Mallorca or if we shall arrange a meeting with a lawyer. Please note that lawyers in Mallorca are never associated to the real estate agency, the must be independent from the agent and owners.

THE PURCHASE CONTRACT
Upon acceptance of the price you hae offered next step will be to secure the property for the case that no other buyers can buy it. After the searches mentioned before are done, the lawyers will draft a contract called OPTION CONTRACT or PRIVATE CONTRACT OF SALE with all terms estipulated and conditions of the purchase. At this point a deposit will be needed that normally is 10% of the purchase price.

NOTARY APPOINTMENT AND COMPLETION
A sale is formally completed in Spain when the public title deeds of purchase are signed in front of a Notary, the final payment has been made, and possession is given to the buyer. The "Escritura Publica de Compraventa " (deed) is the title document which specifies the name of the owner and includes a detailed description of the property. Under Spanish law it is necessary for the "Escritura" to be signed in the presence of a Public Spanish Notary.
The Notary is a public official who is responsible for recording the sale on the public record stipulating the title deed has been signed in his presence and understood by the parties concerned. For the notary completion date it is no necessary to be in Mallorca, you can also give a powe of attorney to the lawyer. This is the process whereby you nominate someone to transact on your behalf, for example to buy or sell houses, open bank accounts and sign documents. This can be between partners and on a reciprocal basis, giving both equal rights to effect transactions on behalf of each other. Also, this can be arranged for a third party, meaning that the purchasers/sellers of properties do not need to be present at the Notary when the sale takes place.


PROPERTY TAXES
The property purchse taxes are arround 10% of the total purchase price, this can include also the lawyers fees.
 
N.I.E. (Número de Identificación de Extranjeros)
This is an identification number for use by foreigners in Spain. If you have dealings within Spain, even if you are not full time or tax resident, you are required to have this number. On Mallorca this number is indispensable in order to pay the taxes related with the purchase. Most banks will not sign the mortgage unless the number has been issued. We , at Balearic Properties or your lawyer will assist with this aplication.

For any information please feel free to contact our property experts at:

Balearic Properties
Head Office Mallorca
Via Pollentia 3
Phone: +34 971 532 221

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