Real Estate Due Diligence in Mallorca

A fast-moving property market makes thorough real estate due diligence essential when buying a property in Mallorca.

Although sellers and estate agents should provide information about the true condition and legal status of the property, properties are still bought and sold with charges, restrictions and planning problems, especially on rural land.

What should real estate due diligence in Mallorca include?

Legal checks

The buyer’s lawyer should verify:

• Ownership and authority to sell. The seller must own the property and have the legal capacity to dispose of it. Third parties may hold rights over the property, and bare ownership does not necessarily include possession.
• Mortgages and other charges. If charges exist, the contract should establish a secure cancellation mechanism, including withholding sufficient funds where appropriate so that the buyer does not bear the cost.
• Outstanding debts. Not every debt appears in Land Registry documents. Local property tax and homeowners’ association debts must also be checked.
• Planning legality. Mallorca contains many properties built without the required licence or with extensions added after the original licence. These issues can lead to enforcement or demolition proceedings and may prevent future renovation or repair work. A detailed legal review is necessary to identify them.
• Purchase and ownership costs. Due diligence should explain the taxes and other expenses connected with the purchase, as well as the property’s recurring annual costs.

Physical and technical checks

Where necessary, the buyer’s lawyer should arrange a technical inspection by an architect or quantity surveyor to assess the physical condition and correct functioning of the property.

The survey should compare the property’s actual measurements with the official documents, as this is one of the most effective ways to detect unauthorised extensions.

It should also verify that the areas recorded in the certificate of occupancy correspond with reality and identify defects or pathologies that do not appear in legal documents.

Before you sign

Sign knowing exactly what you are signing.

Have a free initial consultation with a property lawyer in Mallorca before making a commitment.

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