Real Estate Contracts

The first stage in buying a property in Spain and Mallorca is usually the signing of a contract (contrato). It is possible to go to a notary and have him draw up the deed without having a contract but this provides no security for either you or the vendor and is highly unusual. In any case, when you are paying a deposit, which is usual, it is necessary to have a contract.

A contract can be drawn up between the buyer and the seller, although you´d be extremely unwise to do so without using a legal expert and most buyers have a contract drawn up by a law yer for approval. Some estate agents have standard contacts that they use, but these may not safeguard your interests and it is much safer to use a mallorcan lawyer.

There are three types of contract:

•  Private purchase contract – a standard purchase contract ( contrato privado de compraventa ), which is binding on both parties and involves the payment of the deposit.

•  Option contract ( contrato de opción de compra ) is not a binding purchase contract, but a deposit must usually be paid, which you will lose if you withdraw from the purchase.

•  Reservation contract´( documento de res erve )- you pay a small “goodwill deposit”, eg.€1.000 to €5.000, which usually secu res a property fro a period, such as 30 days.

Property Tax

Property tax is based on the fiscal or rateable value of a property. Due to the increase in property prices in most parts of Spain over the last five years, fiscal values are often far lower than the market price. As a result, many municipalities are reviewing fiscal values. If you receive an official communication (usually in the form of a registered letter) that the fiscal value of your property is about to increase, you should check that it has bee n c orr ectly calculated.

Property values are calculated according to a variety of measurements and evaluations. To check that a property is correctly specified, go to the town hall or the urbanismo (the office that deals with building regulations), ask to see its dossier ( expediente ) and obtain a certification catastral , which is the property description used to determine the fiscal value. Errors are fairly common.

More informations are to become by our sales team at our offices in Mallorca:

Puerto Pollensa Property
Avenida Joan XXIII 90, 07470 Port de Pollença
Tel: +34 971 86 77 00

Other Properties in Mallorca under: www.balearic-properties.com
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