It is not uncommon for foreign minors to hold property rights in Spain, whether through inheritance, donation, or deliberate acquisition as part of estate or tax planning. When the time comes to sell, however, key legal questions arise: can the minor sell? Which law applies? Is judicial authorisation required?

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.

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 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.

The purchase and ownership of "out-of-order" buildings in Mallorca come with a myriad of legal and practical risks that real estate actors and prospective buyers must fully comprehend. Contrary to the popular notion that such constructions are "alegal", the reality is that they are illegal in terms of urban law and subject to stringent regulations, particularly under the Urban Planning Law of the Balearic Islands (LUIB).

It's crucial for both sellers and buyers to be well-informed about the legality and limitations that come with owning a property in this predicament. Not only are future renovations or constructions limited, but non-compliance could trigger legal actions and significantly depreciate the property's value. Such comprehensive understanding is key for effective and compliant real estate management in the region.