What is this article about?

 

Certification of the property

Registry certification

Cadastre

Urban Certificate / Town Planning Certification

Certificate of Demarcation of Shores

Energy Efficiency Certificate

Purchase Option

Signature of the Public Deed of Sale

Payment of Taxes

Property Registration

Professional advice

If you have any questions or questions about how to buy a house in Mallorca, at Casal Mallorquí we will be happy to advise and help during the process of buying and selling a property.Before buying a house in Mallorca, many aspects and documents have to be considered since it is a very important investment and, usually, it is a long process.

In Casal Mallorquí we explain you how to buy a house in Mallorca. This list contains the main steps or documents to consider before making a purchase of a property.

 

Certification of the property

You have to request a certification of the property in the property registry, since with it we will be able to know exactly some important data as if the property in question has some type of load such as a road to servitude, some seizure or even a mortgage. It also informs us about whether the house has any type of lease or if it is officially protected. For last and most importantly, the certification of the property informs us of who is the owner of the property.

Registry certification

This is where you can find all kind of information related to the property. It includes the type of property that is, whether it is a plot, a building or a house, and if it’s located on rustic or urban land. It also indicates the ownership, that is, the name of who it belongs to and the mode of its acquisition, the exact location, the boundaries and limitations of the property, the surface or dimensions and everything that is registered on the property. In addition, it also informs us about whether the property in question may have a charge and / or limitation on use. This may be the shortest document with more information of all.

Cadastre

In the cadastre it is where we can see the main characteristics of the property: the graphic representation, the location, the surface, the use or destination, its cadastral reference … in case the property is a land or plot it also informs us about the kind of use or cultivation of it. Any person can access to the cadastre website and acquire it for free. Nowadays it is mandatory to update the data to match the registration and cadastre.

Urban Certificate / Town Planning Certification

Before buying a property, it is necessary to verify that the property is legally built and / or that it has no illegal construction or even that there is no urban irregularity. To verify all that you can ask the corresponding city council for all permits and licenses.

Certificate of Demarcation of Shores

In the case of an estate or building that borders the sea, the Certificate of Coastal Demarcation must be obtained. It determines that the property does not invade the land maritime public domain (10m).

Energy Efficiency Certificate

Since June 1, 2013, it is an essential requirement to present the energy certificate at the time of the sale, since such transaction cannot be carried out without it.

Purchase Option

Usually, the purchase of a property is a long process that can take a few weeks or months, so it is very common to sign a private contract as a guarantee that the sale will continue. Normally it is usually a purchase option contract where the buyer pays an amount agreed to the seller, usually 10% of the total purchase price.

Signature of the Public Deed of Sale

After having checked all the necessary documentation, having signed the purchase option contract (in the event that it has been made) and having drafted the final contract of sale, only the signature of the public deed of sale remains before a notary, since his performance as a professional provides legal certainty to both the buyer and the seller.

Payment of Taxes

This is one of the last steps to follow in the process of buying a house. If it is a new property, the buyer must pay the seller / promoter the corresponding 10% VAT in addition to the Tax of Documented Legal Acts (IAJD), which is 1.2% of the purchase price.

In the event that the house is not newly built, the ITP (Property Transfer Tax) must be paid. It can vary between 8 and 11% of the purchase price and must be paid within 30 days of signing the public deed to the corresponding Autonomous Community Treasury.

  • 8% to € 400.000
  • 9% between € 400.000,01 and € 600.000
  • 10% between € 600.000,01 and € 1.000.000
  • 11% over € 1.000.000

Property Registration

Once all the procedures have been completed and the property purchase has been done, the property must be registered in the name of the new owner. The process of registering the property can be done by the same notary at the end of the signing of the contract of sale and usually lasts between one and two months.

Professional advice

If it you are not so sure about how to buy a house in Mallorca, it is quite advisable to consult with a lawyer or real estate agent to explain and help you throughout the process of how to buy a house in Mallorca. In this way it will not be necessary to follow all the steps and advice mentioned above.

If you have any doubt or questions about how to buy a house in Mallorca, at Casal Mallorquí we will be glad to advise and help you during the process of buying and selling a property.