What you need to know when buying a property in Mallorca

To avoid unpleasant surprises when buying a property

The notarial deed must be certified by a licensed notary in Spain. It must include the following:

   1st Name of the notary, the number of the instrument role, place and date on which the deed was signed.
   2nd The exact description of the property. This includes all details of the land registry, as the number of the land register, particulars of the land sites for real estate, Finca number and size and location.
   3rd Evidence from the notarial deed of sale, was acquired when and notary public before whom the property.
   4th Cadastral number of the property. The receipt of the last property tax must be presented to the notary by the seller, they will be part of the deed.
   5th Purchase price and payment terms. The need of the buyer to the seller paid to be detected by payment document, or it may be not in the land register.
   6th If the seller is not tax-resident, one Vorabsteuer of 3% will be due. This amount is disclosed in the notarial deed.
      The selling price is reduced by this amount of tax from the buyer within 30 working days to pay the charge, Spanish tax office.
      People who pay income tax in Spain, are exempt from this requirement. In the annual tax increase, the profits from real estate sales, will be taxed.
   7th A statement by the seller that the property is unencumbered at the time of the sale. If this is not the case, the charges are explained and in the notary contract are listed. They are then paid by the buyer. Burden of the property are from the current Land Registry, which see to be received by the notary at the time of the sale must. The following charges may be registered:
      a. mortgage of the seller, the buyer would assume the
      b. Tenancy or usufruct
      c. Lien - which should be removed at the time of signing the deed in any case the land
       
   8th The seller assured in the deed that there is no tenancy rights of third parties and are paid all taxes and fees. Property tax receipts for payment and any costs of a community of owners must be provided by the seller.
   9th On the day of the notarization, the notary must inform the Land Registry by fax for the purchase. The Land Registry will enter a preliminary Vorlagevermerkt that protects the buyer against further entries or changes in the land. Within ten days, then has to pay the taxes for the land registration, the deed will be filed with the Land Registry. If the deed is not filed further charges could, without the buyer is informed, be entered on the property.
  10th Note the notary that the land transfer tax is payable within 30 business days, and a cost control of the parties.