Property In Mallorca for sale

The purchase of a property is an important decision and, therefore, it is essential to have all the necessary documentation. We advise you to review the following documents:

• Simple note: confirms ownership and any charges on the property.
• Cadastre record: You can check the cadastral information on the Cadastre Electronic Site to ensure its correspondence with the simple note and verify its validity.
• Cadastral reference value: The reference value is, as of January 1, 2022, the minimum tax value for real estate properties in Spain.
• Habitation certificate: It’s a document that certifies that the property meets the minimum conditions of habitability and health established by local and regional regulations in Spain.
• Energy Performance Certificate (EPC/CEE): Indicates the energy efficiency of a property or building and is used to inform owners and potential buyers or tenants about energy consumption and associated CO2 emissions from the property or building.
• Municipal tax receipts: This allows you to know if the owner has paid the corresponding taxes, such as Property Tax (IBI) and garbage collection fee. We advise you to request the last 4 years’ receipts.
• Utility bills: These will help you determine if the property has paid for basic services such as electricity, water, and gas.

These are some of the documents you should review before buying a property. It is also advisable to request the certificate of debt with the community of property owners and documents that certify the legality of certain parts of the property, such as a swimming pool.

If the property you wish to purchase is already mortgaged, it is important to carefully evaluate the situation. To do so, we recommend that you follow these steps:

• Review the conditions of the existing mortgage. You may be interested in taking over the current mortgage through a change of ownership, as long as the bank allows it.
• If you are not interested in taking over the mortgage, you can ask the seller to cancel the existing mortgage before the sale. This means that the cancellation of the mortgage must be registered in the Property Registry before formalizing the purchase.

Cancellation on the same day of the sign before a notary: This is a viable option if the seller cannot handle the mortgage cancellation before the signing at the notary. If you decide to go for this option, it is important to consider the following steps:

• Make sure of the precise amount required for the preparation of the cancellation check (request the mortgage debt certificate from the creditor bank).
• Verify that a representative from the bank attends the notary signing to ensure the execution of the mortgage cancellation.
• After signing, ensure that the cancellation deed is registered to avoid any future issues.

It is important to bear in mind that any option you choose may carry some risks, so it is recommended that you carefully assess the situation and seek expert advice before making any decisions.

When applying for a mortgage, an official valuation is mandatory and must be carried out by an independent company approved by the Bank of Spain. This valuation will impartially assess the property in accordance with Order ECO/805/2003.

However, even if you are not applying for a mortgage, it is advisable to have the property you wish to purchase valued to verify its market value compared to the sale price.