Many of our clients are interested in how the buying of a property actually takes place. We would like to explain this process in more detail for you.
After a viewing and the decision to buy the property, the prospective buyer makes an offer first. This initiates the following process: buyer and seller agree on a purchase price and determine any conditions. An option contract is then drawn up.
Option Contract
The contract is usually drawn up and collated by the lawyers of both parties. It will contain the following: purchase price, date of purchase, address and property details, all parties involved and any outstanding conditions up to the date of the notary (for example: repairs).
The contract also specifies a date for the deposit payment (10% in most cases). Now the buyer has one week to transfer the amount to the account of the agreed notary. The notary holds the deposit until the contract is signed.
The option contract itself is signed by both parties, buyer and seller, after all conditions have been determined. The buyer must then transfer the agreed down payment. If this is not done, the contract is null and void. It is important to know that no notary is required as a witness for this contract. The contract also specifies the date of purchase, which can be for example one month in the future.
Completion Of Purchase
On the agreed purchase date, the buyer and seller meet at the notary’s office to finalise the purchase of the property. At this meeting, important documents (e.g. Copia Simple) and deeds as well as the key are handed over. The purchase is then registered in the land register and cadastre. In return, the seller receives a cheque for the remaining amount of the purchase price or the notary takes care of the cheques after transferring the entire purchase price to his trust account.
The commission for the estate agent may also be stipulated in the contract. Taxes and transfers, e.g. of electricity, water or other fees, are handled by the buyer. However, it is recommended that a gestoria be commissioned with these tasks.
Checklist For Buying Property
- Check your own financing
- Choose a trusted estate agent
- Arrange viewing appointments
- Secure financing / possibly conclude a loan agreement
- Make an offer
- Agree price with seller
- Arrange notary appointment
- Sign purchase contract
- Pay purchase price and all ancillary costs
- Hand over of keys
Costs For Buying A Property
In general, you can calculate the purchase price plus 10% as the total costs. For new buildings, 10% VAT has to be paid, otherwise a varying land transfer tax (depending on the region, here on Mallorca it is currently 8%). The purchase price usually includes the commission for the estate agent including tax (IVA).
Would you like to buy a luxury property on Mallorca? Then please contact us at: info@wackershauser-immo.com or +49 176 1970 8211.
