Purchase process and procedure - buying real estate in Mallorca

Processes and procedures when buying a Mallorca property - The path from the commitment to the Escritura

There is hardly a moment when buying a property in Mallorca that seems as calm as the purchase commitment. A handshake, a brief „We'll take it“, perhaps an email to confirm – and many buyers feel that the most important part is done.
In fact, the legally relevant part is only just beginning.
Mallorca follows clear rules when buying a property. They are neither complicated nor arbitrary - but they are different from what many buyers know from their home countries. Anyone who tries to transfer familiar processes quickly comes under time pressure. And time pressure is the worst advisor in a market where almost every property has its own legal history.

Between commitment and binding

The purchase commitment itself is not legally binding. It does not bind either party, but creates an expectation. Sellers stop marketing, estate agents block inquiries, other interested parties are put off. A later withdrawal is possible - but almost always leaves friction behind.

This is often followed by a reservation. It is intended to provide security, but is not a legally protected instrument. Its value depends exclusively on the content. It is not the amount of the payment that is decisive, but the question of the conditions under which it is repaid. This is precisely where it becomes clear whether buyers are proceeding in a structured manner or simply want to buy time.

The turning point is called Arras
Only with the Arras contract does an intention become a risk for both sides. The buyer binds capital, the seller binds himself to the sale. Spanish law knows no gray area here: whoever withdraws, pays. If the seller cancels, he pays back twice.

This moment deserves preparation. And not in the form of hectic document collection, but as systematic preparation:

▶ What's in the land register? 
▶ What does the land register say? ▶ Are there any discrepancies between the approved and built reality?

In Mallorca, such deviations are not unusual. They only become problematic if they are only discovered after the Arras contract has been signed.

If you want to buy safely in Mallorca, you don't need speed.

A structured guide for buyers who want to invest in a legally clean and predictable way.
Buying property in Mallorca follows clear legal rules - but not necessarily a fixed sequence, as many buyers from German-speaking countries expect. There are several legally relevant steps between the oral commitment and notarization, which determine the security, costs and later usability of the property.

1. the purchase commitment – legally non-binding, practically binding
The oral or written commitment is not a contract in Spain, but has a de facto effect: estate agents stop the marketing, sellers calculate with the sale. Delays in this phase regularly lead to conflicts - usually without legal consequences, but economically damaging to reputation. Those who gain time here gain security.

2. reservation contract – useful, but not standard The Contrato de Reserva is not regulated by law, but purely contractual. Amounts between 3,000 and 10,000 euros are usual.

Typical content:
• time-limited exclusivity
• Offsetting against the purchase price
• provision for repayment (or non-repayment) of negative due diligence) is the 
reservation fee is often lost.

3rd Arras contract – the legal turning point With the Arras Penitenciales, a legally binding commitment is created for the first time.
• Buyer withdraws → Loss of the deposit
• Seller rescinds • Repayment in double the amount
▶ 10% of the purchase price is required

.

Central: The Arras contract should only be signed after full legal verification – not in parallel.

4. Legal due diligence – more than land register A thorough due diligence includes:
• Land register (Registro de la Propiedad)
• Cadastre (Catastro)
• Building permits & Final inspections
• Utilization status 
(residential, vacation, grandfathering)
• Community and development costs
• Legacy burdens, mortgages, easements

Practice: discrepancies between the cadastre and land register are frequent and easy to resolve, but costly and time-consuming

5. financing & source of funds Spanish banks strictly check:
• Proof of equity
• Source of funds (money check)
• Property valuation by bank appraiser

Time factor: Financing regularly extends the purchase process by several weeks.

6. The Escritura – formal transfer of ownership The notarial deed (Escritura Pública) is a prerequisite for ownership, but not yet the completion of all obligations.
After signing, the following follows:
• Payment of property transfer tax (ITP) or IVA
• Entry in the land register
• Reregistration of utility company & municipality
• Updating the land register

Important in the purchase process The notary arrives late
but is binding
The notary appointment is the most visible part of the purchase process. For many buyers, it seems like the climax. In reality, it is more the formal conclusion of a phase that was ideally completed weeks earlier.
The notary notarizes, he structures, he explains - but he does not replace an individual examination in the interests of the buyer. Security is not created at the notary's table, but in the weeks leading up to it: through proper preparation, realistic time planning and knowing which questions need to be asked.
The Escritura is followed by taxes, registrations, re-registrations. Administration instead of emotion. This is also part of the purchase – and should be taken into account from the outset 
. be taken into account.

Merksatz: What is not tested before the Arras Treaty  can hardly be corrected later.