Essential legal aspects when buying or selling property in Mallorca
Buying or selling a property is often a life-changing decision that involves considerable financial outlay. In order to avoid disappointment, it is advisable to accompany the process carefully. An experienced lawyer and founding partner of a renowned law firm explains that the most common legal problems are usually related to the condition of the property. Therefore, legal due diligence is essential before the sale.
The biggest legal disputes arise because it is often overlooked that when a property is purchased, not only the physical structure is acquired, but also all the rights and obligations associated with it. During due diligence, encumbrances are often discovered that the buyer was not previously aware of.
Among the legal aspects to be considered when buying or selling a property are legal capacity, knowledge of the applicable legislation, the various regulations and possible scenarios such as encroachments, expropriations or easements. Important documents that the seller must provide include:
- The deed that identifies him as the legal owner
- Cadastral documents and land register extract of the property
- Proof of the tax situation (e.g. IBI)
- Energy report and certificate
- Certificate of Habitability
- Last utility bills
- Documents concerning the community of owners and obligations for the property
- Any documents that may directly or indirectly affect the property
It is important to note that foreign buyers and sellers naturally have the same rights as locals. Important points when buying a property in Spain for foreigners include obtaining a foreigner identification number (NIE), contractual formalities, financing and the taxation of property purchases in Spain. Investors should inform themselves about the tax obligations and ensure that they make the corresponding payments.
