When buying a property in Mallorca.

When buying a property in Mallorca.

You need to be aware of the legal issues when buying a property in Mallorca.

Consideration when buy a property in Mallorca, our advice is to get a  lawyer who can help you through the process.
As a first-time property buyer in Mallorca, how different the legal process is in Mallorca compared to your home country.

Offer; An ‘option contract’ is the first step and usually requires you to pay 10% of the purchase price in advance and commits both buyer and vendor to the sale.  If the buyer does not go through with the sale the deposit may be non-refundable.  If the vendor pulls out they usually have to refund the deposit plus another 10% of the purchase price. This rule exists to prevent spurious offers and gazumping.
Paperwork; An NIE tax number must be held by an overseas purchaser to buy a house. You will also need to provide your passport.
Finance; If you are not a cash buyer, it is a good idea to investigate your mortgage options as early as possible.  You will also need a Spanish bank account to run your property.  
Taxes; While you should allow approximately 10% in addition to the purchase price for all costs and taxes.  
Completion; All parties are present with ‘the official notary’ for the final exchange of contracts, including any banks involved with mortgages held by the buyer or seller.  All monies need to be paid at the same time and all paperwork must be correct or the sale will not go through.  
After the completion;  there is also quite a bit of paperwork to complete to transfer the utilities and payments for community charges.  Sometimes this will be done by your estate agent and sometimes by your lawyer or a ‘gestoria’.  

We hope you have found this information useful!