Mallorca Property Partners

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What is the process for buying a property in Mallorca?

Answer

The process of buying a property in Mallorca is relatively straight forward. When a price has been agreed the first step is to make a deposit to show serious intent and take the property off the market. Following this an "Option Contract" is agreed and signed and this usually takes 2 or 3 weeks, although can take longer if there are aspects of the property or sale that need to be looked into prior to the contract being finalised.

The Option Contract stipulates the price and all other conditions attached to the sale. At this stage 10% of the purchase price is paid minus the amount paid initially as a deposit. This money is non-returnable unless a condition within the option contract is not fulfilled by the vendor.

Equally the vendor can not pull out of the sale unless the buyer does not fulfil part of the contract, and if they do they will have to return the option payment plus the same amount again, so the penalty for non-fulfillment is the same on both sides.

The final step is completion of purchase at which point the outstanding balance of the purchase price is paid.

It is essential that you have a good lawyer to handle the conveyance. They will check title to the property and that planning regulations have been adhered to. They should guide you through the all aspects of the purchase process and associated requirements such as having a local bank account to pay bills related to the property.

If anyone suggests buying a property without a lawyer ignore them. You would not do this in the UK and it would be equally fool-hardy to do so in Spain, or indeed any other country.

Without this you are at risk of buying a property where the title or permitted structure of the property is different to what you think you are buying, and you will lose the benefit of the wide range of advice a good local lawyer is able to provide.

This is particularly true of older properties that have been renovated or restructured over time. Issues are rarely insurmountable and all the relevant checks can be handled by your lawyer within a few days.

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