Buying property in Mallorca, Spain, can be an exciting venture, but it’s important to navigate the process carefully. Here’s a comprehensive step for step guide to help you:
1. Research and Budget
Begin by researching the property market in Mallorca to understand the types of properties available, their prices, and the different regions of the island.
Determine your budget, considering not only the property price but also additional costs like taxes, fees, and ongoing expenses. A rough estimate would be 10-12% of the buying price that you can expect as additional costs. Included in that is taxes, notary, legal fees and more.
2. Choose a Location
Mallorca offers a variety of regions, each with its own character. We have prepared 6 key questions for you to answer to make your decision on where to buy in Mallorca much easier. You can find these question in our ultimate buying guide here: The Ultimate Guide on buying a property in Mallorca.
3. Legal Requirements
As a foreigner, you’ll need an NIE (Número de Identificación de Extranjero) number, which is a tax identification number, to purchase property in Spain. Hire a local lawyer who specializes in property transactions to guide you through the legal requirements. At Reiderstad Invest we are happy to help you with all these matters and recommend you the best contacts on the island.
4. Property Search
You can already start with having a look at our properties on our website or you contact directly one of our broker with your search criteria. Not only do we have an extensive knowledge of the local market, but we also have insights into off-market properties, meaning you’ll have access to exclusive opportunities that may not be readily available to the public.
5. Property Valuation and Survey
Consider hiring a surveyor to assess the property’s condition and verify that there are no hidden issues, you can also obtain a property valuation to ensure the asking price is fair. As your trusted partner in your property search we will do everything we can to assist you in this matter, using our wide network of very good contacts.
6. Negotiation and Offer
Once you find a property you like, we can start negotiate the price with the seller. With our extensive expertise and good relationships with the seller, we ensure that both parties are satisfied and enable a favorable deal for everyone involved.
7. Reservation Agreement
If the seller accepts your offer, the next step is to sign a reservation and pay a small reservation fee to secure the deal. In some cases there is also just a verbal agreement and then you go for the option contract, also depending if there are also other parties making an offer on the same property.
8. Due Diligence
During this period, conduct a thorough due diligence process, including verifying property documentation, land registry records, and any outstanding debts. We always recommend our clients to hire a lawyer to support you in this case.
9. Option contract
Once due diligence is satisfactory, sign a private purchase contract (Contrato de Arras) and pay a further deposit, typically around 10% of the purchase price.
10. Completion at the Notary
The final step involves signing the deed of sale at the notary office. Both parties, or their legal representatives, must be present. Here you pay the remaining balance and any associated fees and taxes.
11. Property Registration
After completing the purchase, ensure the property is registered in your name with the local land registry.
12. Ongoing Costs
Account for ongoing expenses such as property taxes, community fees (if applicable), utilities, garbage care and maintenance. Hence that all ongoing agreements/costs for water/electricity/gas must be written over to the buyer immediately after the notary. Your lawyer can help you with this.
Good to know
Who is paying the real estate agent comission?
In Mallorca the standard practice is for the seller to pay the real estate agent commission fees, unless otherwise agreed.
Should I only work with one real estate agent?
Navigating through the different property offers and agencies on the island can be overwhelming. Our recommendation? Choose one trusted real estate agent to handle all your needs, from organizing viewings to negotiating deals. It’s common practice for real estate agencies in Mallorca to collaborate, meaning your chosen agent typically has access to all available properties on the market.
Do I really need to hire a lawyer when buying a property in Mallorca?
Remember that property laws and regulations may change, so it’s crucial to consult with a local lawyer and stay up to date with the latest requirements throughout the buying process.