Buying Property in Mallorca (Part 2)
Real Estate Contracts
Buying Off Plan
For properties that have not been completed or are yet to be built, payment is usually made in stages with an initial deposit of approximately 40%, with the remaining amount being offset in stage payments. This may vary depending on the level of completion. You can also agree to pay a fixed amount every so many months. Your lawyer must confirm completion of each stage in writing before you make payment. Late payment may result in you forfeiting all previous payments and the property being sold to a third party. Make sure the builder or developer has an insurance policy.
Condition clauses (cláusulas abrogatorias) in a sales contract usually apply to events beyond the control of the seller or buyer and must be complied with to ensure the validity of the contract or it will be declared void.
Condition clauses can really apply to anything from mortgages, building permits and permits, building plans, land and restrictive covenants (afecta de servidumbres) for which you can check the land registry. The sale may also be contingent on the sale of another property or subject to an inspection or building control. The seller may be responsible for any defects in the following six months after the deed is signed, but it is always better to resolve these issues beforehand.
Once the notary has all the necessary documents, you will be asked to make the full payment, minus the deposit and mortgage if applicable. You will also receive an invoice for notary fees and taxes and usually have 30 days to pay them.
You will receive a complete draft of the certificate. When you sign the deed, you agree to purchase the property as is at the time of signing
Click here to continue with The Best Restaurants in Mallorca (Part 1)