Illegal properties in Mallorca – What you should be aware of!
Illegal properties in Mallorca and what you should be aware of!
More and more people are looking at Majorca properties in more rural areas of the island, because ther prices for beautiful finca properties are interesting and more often bargains are to find compared to the beach hotspots of the like Port Andratx, Portals, Bendinat, Palma and Son Vida.
If you are thinking of buying a Mallorca property in a “rustic” zone, then our advice is to get in touch with a lawyer and architect! They can save you a lot of money and trouble!
The reason for this is that many of these properties often have an illegal structure, extension or are not even registered.
Nobody likes to pay taxes, this also applies to the Spanish property owner. It is not unusual that the land has been owned by the same family for centuries. As you have to start paying property tax as soon as the property is registered, this is postponed until the property is getting sold. The tax is called IBI and stands for “Impuesto sobre Bienes Inmuebles”.
If you decide to buy Real Estate in Mallorca – with or without development – you should not pay a deposit until you or your lawyer have received a “Nota Simple”. This is the official paper from the land register. If the property is not registered, this document will not exist. If there is a building on the land but it is not registered on the Nota Simple is specified, it will not be registered!
Let us assume that the property is not yet registered.
In order to register it, a qualified architect must inspect the property and survey the building. He will draw a complete plan of the land and all buildings. This will be sent to the town hall, stamped and approved for registration or not. You will then have to register the property with a notary. The laws, rules & regulations for this, however, change constantly, sometimes at short intervals and without warning. Speak before signing an option contract for the purchase of a property in Mallorca absolutely with a lawyer.
If land or property has not been registered, there is always the risk that a private person or official authoroties will charge a fee for an unpaid debt so that it can be made valid immediately after the property is registered.
This is common practice in Spain to ensure that the debt is eventually paid. Once the property is registered in the land register, a notice may appear on the Nota Simple referring to “La Ley de Hipoteca”.
This is a warning to the banks not to approve mortgages on this property for a certain period of time, usually between 2-5 years, as a fee may be charged during this period.
We hope that this information was or will be useful. If you are confronted with any of the problems mentioned above, there are solutions! You just have to know where to look or who to ask.
We will be happy to assist you in choosing an expert real estate lawyer in Mallorca.
It remains to say that any architect and lawyer is worth his money if he does his job properly and checks the property before buying it, so you can sign the purchase contract with peace of mind.
You can find our real estate offers here: https://www.mallorcaagent.com/our-properties/
YouTube: MALLORCA AGENT Youtube Channel