To ensure that your dream property in Mallorca doesn't turn into a nightmare, there are a few things property buyers should bear in mind.
Often appearances are deceptive - this is especially true for real estate. For this reason, you should not rely solely on your intuition. What counts are hard facts. And these can be checked, for example by comparing the land register and cadastre. Buyers should also take a close look at the ownership structure and encumbrances of a property. Lawyer Sonja Willner explains the pitfalls and traps. So that you can find your dream property safely.
What special features are there in Spanish law with regard to buying a property?
There are some important differences when buying a property in Spain compared to Germany. For example, ownership is usually transferred directly to the buyer at the notary appointment. The purchase price is paid in full, according to the motto „keys for money“.
Registration in Spain is purely declarative, but not constitutive for the transfer of ownership. Property can be transferred without any formalities, so caution is advised when signing an agreement whose consequences cannot be foreseen. Notarization is only required to enter the purchase in the land register. For reasons of legal certainty alone, every transfer should be notarized and registered.
This also brings us to the function of the notary. Unlike in Germany, for example, he neither arranges the transfer nor inspects the property (he draws a current extract from the land register before the notarization and gives instructions, if the parties still want to notarize, he does so). The notary notarizes the will of the parties, no more and no less. The buyer must take care of tax payments and transfers on their own responsibility. It is therefore important to have expert advisors. But this is not the broker. Brokers have an important function, they put the parties in contact and support them in negotiations. However, they are not allowed to give legal or tax advice, and a reputable broker will point this out to the parties and recommend consulting lawyers and tax advisors.
One thing that comes up again and again: Everything is in the land register or cadastre and is therefore legal?
No, just because properties are entered in the land register and/or land register does not mean that they are legal. The land register (Registro de la propiedad) is decisive for the transfer of ownership. If you see more buildings in the cadastre than in the land register, you should take a closer look.
Many sellers tend to make inventory declarations afterwards, which means that they explain to the notary how the property is built on in order to achieve congruence with the cadastre if necessary. This declaration is then entered in the land register. However, this does not mean that the property had a building permit and building inspection – every buyer can only be advised to have these issues checked by a specialist. The fact that there has already been a so-called certificate of habitability for the property does not mean that it can be renewed. If extensions have been carried out without complying with building law, this may be the case when applying for a renewal of the certificate of habitability.
What should be clarified before a purchase
?
Ownership and encumbrances. It should be checked whether the property, as it stands there, has been approved and accepted. It is often the case that a property that was once built in accordance with the building regulations grows over the years and it is not necessary to have these changes approved. This applies not only to houses, but also to many an attic that has been converted into an apartment and used as an apartment. You should always check how the connection to the electricity supplier is made, for example. If there is no separate meter, caution is advised. In the case of apartments, the minutes of the owners' meetings provide information about the state of maintenance of the property and whether any (expensive) renovation measures are pending.
Mortgage charges are usually deducted from the purchase price and the bank issues a loan approval. It is important that the debts do not exceed the purchase price. You should also always agree a retention in order to pay the costs of the clearing (which the seller has to bear) from the purchase price accordingly. If you decide to purchase a plot of land, you must also ensure that the planned project can be realized. Building regulations are always changing and the dry rivers (torrentes), which are used to drain large volumes of water, have already put a spanner in the works of many a construction project.
What mistakes should buyers and sellers avoid at all costs?
Nobody should act in haste. A vacation property should be a joy, but this can quickly be ruined if you enter into contractual obligations without realizing the consequences for fear that someone might snatch your dream property away from you. There are hardly any shortcuts. If a property is considerably cheaper than comparable properties, it should be clarified why this is the case. Even if the heart says "yes", everything should be assessed rationally.
The Spanish press also reported that the „Golden Visa“ is to be abolished. This regulation gives foreign, non-European investors the opportunity to obtain a residence permit in Spain with a minimum investment of 500,000 euros per person. However, this hardly had any effect on property purchases, at least not in my office; in my view, it was more of a populist measure to offer a supposed solution to the prevailing housing shortage.
Sonja Willner
German lawyer
Spanish abogada
Plaza Porta Pintada 3
Palma de Mallorca 07002
Spain: Tel. +34 871 180 197
Germany: Tel. +49 30 629 37 600
www.willner.legal
