For you, as a buyer or seller, the right choice of estate agent is crucial for the success of the planned transaction that you desire.
Admittedly, the range of estate agents on Mallorca is extensive and, without prior knowledge, it is difficult to make the right choice for you straight away.
You can use the usual criteria when choosing an estate agent, such as their website, reputation, and property listings. A personal recommendation from someone you know would certainly be very helpful in making your choice.
MD-Tip: In addition to all the criteria mentioned above, please also place value on the personal qualifications of the agent and their life experience, not just concerning property in Mallorca. A reliable point of contact is more sensible in the long term for decisions of such importance than a “big” name where you have to deal with changing contacts.
Even an extensive property listing on the website says little about the detailed knowledge of the individual properties. Last but not least, the estate agent should ideally have a good command of your mother tongue.The commission on property purchases in Mallorca is generally paid by the seller. For this reason, most properties are commission-free for the buyer.Once you've found your dream property, you should promptly address the following matters:
- Written purchase price offer – after consulting with your estate agent, you should submit a written offer to the seller stating the price at which you are prepared to purchase the property.
- Applying for your N.I.E., as you cannot conduct any legal transactions in Spain without this tax number. In the event that the property is acquired by multiple buyers, all will require their own N.I.E. number.
- Review of all essential property documents by a competent Spanish property law specialist
- Drafting a deposit agreement by the real estate solicitor
- After both parties have signed the deposit agreement, you should submit all necessary documents within the period specified therein until the notary appointment and, if applicable, apply for financing.
- Opening a Spanish bank account (not strictly necessary but very useful in the long run), especially for later direct debits for all utilities
- Completion of the purchase agreement at the notary, payment of the remaining purchase price and handover of the property, registration of the new owner in the Spanish Land Registry (the notary appointment usually takes place a few weeks or 2-3 months after the signing of the deposit agreement, with individual arrangements being made for this).
- Re-registration of all utility providers (electricity, water, gas, etc.)
MD-Tip: When making a purchase offer, you should always give the seller a deadline to ensure they have to make a decision within that period. The deposit agreement typically stipulates a deposit of 10 % of the purchase price, which is to be paid by the buyer into an escrow account held by the notary. In the event that the purchase contract does not materialise, it should be recorded whose fault it is. Should the buyer decide otherwise, they will forfeit their deposit – should the seller change their mind, they must pay the buyer compensation of the same amount.
