If you are looking for a dream home in Mallorca it is good to firstly understand the process. It is always best to get advice from a notary or lawyer as the information we provide is meant as a guide.
Viewings and making an offer
We will organise the viewings for the properties you choose and once you have fallen in love with a property we can talk about what you will offer. We will place that offer with the seller and negotiate as necessary. When looking at the price of the property you are purchasing, don´t forget to factor in approximately 10% additional costs on top the of the property price. These costs cover local taxation, notary fees, registration fees and in certain circumstances legal costs as well. The transaction can progress more rapidly than in other countries, mainly because there is no local authority search in Mallorca. Your lawyer conducts all the searches.
Lawyers and searches
It is common although not mandatory to hire a lawyer when purchasing a property in Mallorca. We would however recommend that the costs are money very well spent as your lawyer will check and approve the contract of sale or prepare a new one and can organise your NIE if you don’t have one. They will then:
- Check the property belongs to the seller
- Make sure the property is completely free from debt
- Check the property has the correct building permissions
- Give you an estimate at this time of the taxes you can expect to pay on the purchase
- Acquire and confirm the stated price on the deeds.
Signing the contract
Once your lawyer is completely satisfied, the option contract stating your intention to purchase will be signed and 10% of the purchase price will be released from your funds. The property is then officially reserved so you and the seller are now committed to the purchase.
A Notary formally completes all residential property sales. Your lawyer will set a Notary date for this when signing the option contract which must be attended by at least:
- The purchaser (or you can give Power of Attorney if you need to and most people select their lawyer), the seller and the Notary, the public official whose duty it is to see the final legal transaction is carried out.
The notary and the public record
The Notary puts on public record that the title deed recording the sale/purchase has been signed and understood by both parties in their presence.
You will be given a copy of the title deeds whilst the original will be presented to the appropriate land registry by your lawyer and registration will be completed.
Financing your property
If you require a mortgage for a purchase in Mallorca, and you’re a non-resident you’re normally allowed to borrow 60% – 70% of the purchase price or valuation, whichever is greater. A resident of Mallorca can borrow up to 80%. In 2019 new EU legislation was passed in Spain making the mortgage process more transparent and more like getting a mortgage in the UK. The ultimate decision on granting a mortgage will be the buyers affordability. If you are a cash buyer things are more straightforward.
We work with an English-speaking mortgage broker who can offer many deals that otherwise the banks would not provide. Send us an email and we would be delighted to introduce you.