When purchasing property in Mallorca, it's essential to understand the registered encumbrances that may affect the asset. These encumbrances, such as mortgages, easements, and preventive annotations, can significantly impact the property's value and usage conditions. This article explores the most common types of registered encumbrances and provides guidance on how to identify and manage them, ensuring a secure and hassle-free purchase.

The publication of Decree-Law 3/2024 introduces an extraordinary mechanism for legalizing constructions on rustic land in Mallorca. This procedure, valid for three years, requires environmental improvements and prohibits use for tourist rental. We detail the process, associated costs, and eligibility for properties.

This blog entry explores the Habitability Certificate in Mallorca, a crucial document ensuring properties meet minimum living standards. It covers its definition, legal background, including the Decree 145/1997 and Law 5/2018, and its necessity for property transactions and utilities contracting. The entry discusses various certificate types—first occupancy, renewal, lack, and duplicates—and the obtaining process. It highlights the difference between habitability and urban legality, emphasizing the certificate's role in property legality but not guaranteeing urban compliance. Essential for buyers, renters, and legal professionals, understanding this certificate is key to secure real estate dealings in Mallorca.

Mallorca's property market experiences a high turnover of properties which, after refurbishment, are sold for significant capital gains. This article takes a closer look at how these refurbishment expenses impact the taxation of property sales for both residents and non-residents in Spain.

The law distinguishes between "investments and improvements" (which add new features to the property) and "repair and conservation" (maintenance of the functional state), but in addition, the interpretation of the law is particularly restrictive with regard to what can be considered as an improvement to the property. In this article we analyse the differences between the two when it comes to being applied to reduce the capital gain on the sale of the property and provide solutions to justify the validity of their application.

This guide outlines ten crucial tips for tenants based on experience in Real Estate Law. It includes recommendations on maintaining a good relationship with the landlord, the importance of knowing your rights and obligations, and how to avoid abusive clauses. It also covers verifying the landlord’s ability to rent, the importance of clear contracts, handling real estate agency fees, and property care.

The Law 12/2023 introduces changes in the real estate sector, focusing on consumer protection and transparency. While it doesn't bring major novelties compared to previous laws, it does detail the informational obligations of real estate agents. One of its most controversial aspects is the clause requiring the provision of "any other relevant information," an ambiguous term that could lead to legal complexities and penalties. Though well-intentioned, the law creates uncertainty for agents and could increase costs for sellers.

In the realm of rentals, there's a widespread misconception known as "the 11-month myth", suggesting that by signing a lease for less than a year, one can bypass the obligations set by the Urban Lease Law (LAU). However, this practice, aiming to differentiate between "housing rentals" and "rentals for uses other than housing", doesn't manage to dodge the mandatory rules of the LAU. Despite fraudulent attempts, jurisprudence has been clear in emphasizing that the essence of a lease isn't determined by its duration, but by the cause or purpose of the contract. It's crucial for the parties to clearly define their intentions when signing, avoiding standardized models and reflecting the real situation of both at the time of contracting.

In the Spanish real estate market, the "two-step" structure is predominant, with most transactions being articulated through a private contract followed by a subsequent public document (deed).

The private contract is crucial as it establishes the foundations and obligations of the operation. With it, the obligation to buy and sell is perfected, and it should define fundamental aspects such as the object, price, and terms. When properly drafted, it provides the parties with legal security about the business and its implications in the phase prior to the notarial formalization of the sale. Therefore, its adaptation to the specific case is essential.

On the other hand, the consummation, or fulfillment of what was previously agreed upon, is generally carried out through the public deed. This allows for registration in the property registry and culminates in the effective transfer of ownership.