Property buying during the coronavirus pandemic is not only possible, but is still consistently happening on the island. The market may have slowed down, but notaries are working and transactions are moving right along. This goes beyond domestic investment. Foreign investors know the COVID-19 crisis is a temporary ordeal and do not want to miss the opportunity to purchase property by waiting. These investors have analyzed the right moments to be able to buy at a lower cost. Nevertheless, the process of buying a property in Mallorca has shifted to meet the new standards during the pandemic.
How finalizing contracts has changed during the Coronavirus
The right person to draft a contract is a legal professional: It’s not uncommon for people without any legal training to draw up contracts and cause serious and drastic consequences for their clients. In these unprecedented times, contracts must reflect the current situation in Mallorca. It’s essential to plan for impediments such as the borders remaining closed, certificates unable to be processed, or what would happen if one of the parties dies.
Using video conference platforms is now commonplace: These forms of communication have become widely accepted at present.
The use of proxy buying is becoming standard: To avoid unnecessary travel, there has been a growing trend in giving power of attorney to a specialised lawyer who is a member of the Bar Association and holds a valid licence.
Purchases without power of attorney: A lawyer can make a purchase without a power of attorney by instead acting as a verbal representative for the buyer. The buyer can then later ratify the deed before a notary. Thus, buying property in Mallorca during the Coronavirus pandemic is still entirely possible without any of the unnecessary risks associated with current air travel.
Payment by transfer to the notary’s office or to the lawyer’s account: The most common way to pay is with a certified bank check. For this form of payment, the seller must withdraw the check in person from a Spanish bank.
Alternatively, funds can be transferred and deposited into the notary’s account. The notary would then be the one who cashes the check. This method is more convenient, but the notary has to create a deposit certificate which adds avoidable costs.
Another option is to transfer the purchasing amount to the lawyer. Lawyers have the advantage of lower banking fees, thus making this the most cost effective option for the buyer.