Yes, Real Estate scam in Mallorca happens. Every day someone buys a property illegally or with debts without knowing it and by the time they realise it is too late. This is not an exaggeration. From properties that have not paid taxes correctly (and the new owner is held responsible), unpaid urbanisation fees or parts of the property that are out of order, i.e. illegal.
How do Real Estate scams in Mallorca happen?
Simply, because there are still buyers who do not hire an independent advisor to buy the property. They think that the notary guarantees that everything is OK and this is not the case. The notary attests to the transfer of the property.
They also confuse the intermediary (who works for the seller) with an expert in charges, taxation and legality. To be an intermediary in Mallorca it is not necessary to have previous knowledge.
How to avoid Real Estate scams in Mallorca?
-If you are a buyer, hire a advisor independent of the seller and his agent.
-Make sure that your advisor is specialized in the transfer of properties.
-Don’t be in a hurry. Sellers put pressure on you to sign a commitment as soon as possible without giving you time to review the property.
-Don’t pay a deposit to the intermediary. He or she is not the seller. There are brokers who will take a deposit and then negotiate with your offer to get a better buyer. While you are trapped.
What are the consequences of Real Estate scams in Mallorca?
-The most harmless is paying a deposit to an intermediary who does not actually pass the offer on to the seller. They negotiate with other buyers to get a better price. In the end if someone else buys the property they will return the deposit, but in the meantime you have not been able to bid for another property.
-Property with encumbrances. The Treasury will claim from you, as the new owner, the debts that the seller did not pay as well as the interest.
–Illegal parts. Illegal constructions in Mallorca are the worst outcome for victims of Real Estate scams in Mallorca. The consequences can be either disastrous, such as demolition orders or not being able to renovate the property.
Don’t be tricked into buying a risky property. The authorities in Mallorca are increasing their efforts of prosecuting illegal builds. With this in mind, buying a house without the proper certifications will undoubtedly result in unforeseen consequences. I’m offering you the opportunity to test my expertise with a FREE RISK REPORT of your future property purchase.