INTERNATIONAL NEWS: Property Market and Buying Process in Mallorca
Are you thinking of buying a fantastic home in Mallorca? It's not as complicated as you might think...
Once you have found your ideal property and agreed a price, of course you do not want to lose it. In order to make it secure, both parties will need to sign a private and legally binding agreement, or "option " contract. This contract contains all the information about the house, any conditions which may apply, the price and a completion date. A 10% deposit is normally paid within a few days of signing and is stipulated within the contact. You will also need to open a bank account and obtain (normally through your lawyer) an NIE identification number. Remember that whilst the property owner pays the estate agent's fees, the additional costs to bear in mind will be at least 10% of the property price. This is for stamp duty, Notary and lawyer fees and taxes, etc.
Following this, there is a specified period before the completion, or "Notary" when the lawyers complete their due diligence, which includes such matters as making sure there are no charges or encumbrances on the property and that all community and utility charges are up to date until the day of completion. Also that the property is legal and registered. Completion takes place before a Notary and includes the signing of the public deeds plus the payment of the balance of monies. This is the official transfer to the new owners. Once the deeds are signed the Notary validates the document which is then sent to the Land Registry for the transfer of ownership to be registered.
Please get in touch with our office for more information on the real estate market and the buying process in Mallorca. .
E&V Chelsea Team
Tel: +44 (0) 207 584 1100