Properties purchased on Mallorca have to be carefully handled to avoid legal problems further down the line. This is a basic guide to the process.

First, you find a property and make and offer, usually through an agent, then you agree the terms with the seller. You must now secure your purchase, with a simple contract to buy, signed by both parties, and you will be asked for 10% of the purchase price as a deposit. This should be completed in a notary's office.

The notary fees are usually paid by the seller. Unfortunately when buying Mallorcan properties, foreign investors are often pushed into paying these fees. This should not be the case and you should refuse.

Notaries fees are fixed by the government on a set scale. You may also wish to now appoint a Spanish lawyer to act on your behalf. The usual lawyer's fee is up to 2% of the price. The lawyer should carry out such duties as a title search and check over the purchase contract.

Estate agents fee's vary considerably. Again the fee's should generally be paid by the seller, but this may not be the case, so be sure to get the fee's in writing, showing who is responsible and if it is your responsibility exactly how much you will be paying. If your Mallorca property is a new build there will be an IVA tax of 7% of the value. The value of properties may not necessarily be the same as the purchase price, it may be less. There is also a 1% stamp duty payable by the buyer.

Re-sale properties on Mallorca attract a transfer tax of 7%. There is also a 'plusvalia' tax that again, in theory, should be paid by the seller. This is a tax on the increased value of the land, not building, since the last sale.

Once all the paperwork has been completed by your lawyer, you will again go to the notary's office to transfer the property to your name. At this point you will be expected to provide the balance of the properties purchase price and any fee's and taxes due.

Your lawyer should then oversee the actual transfer to your name, the 'escritura publica'. Depending on the local city officials and the time of year this process of transfer of a Mallorcan properties details from the seller to the buyer can be a drawn out affair, so do not be surprised if it takes several months, to actually, 'get your hands' on the deeds.

Find out more about Mallorca Properties at Property for sale in Mallorca

This article was supplied by Mac T. Wheeler, you can find out more about him over at his Freelance and Technology Blog

Source: www.articlebiz.com