Most problems in a property transaction in Spain can be spotted before anyone signs. A charge that was never cancelled, an extension that was never legalised, an expired certificate of occupancy or unpaid community fees can turn a simple sale into a long dispute. Our property document and legal check is designed to find those issues early, whether you are buying or selling in Palma or anywhere in Mallorca.
We carry out this review with legal support, and we explain the results in plain English, in writing.
What we check
1. Land Registry: the nota simple
The nota simple is an extract from the Land Registry (Registro de la Propiedad). It shows who the registered owner is, how the property is described and whether there are mortgages, liens, seizures, rights of way, usufructs or other charges. We check that the seller is the real owner and that any charges will be cancelled before or at completion.
2. Cadastre and physical reality
We compare the registry description with the cadastral record (Catastro) and with the property itself. In Mallorca it is common to find terraces that were enclosed, pools or annexes that were never declared, or areas that do not match. Some differences are minor; others affect the value, the mortgage or the legality of the construction.
3. Licences and planning status
For houses and especially for rural properties, we check whether the buildings have the necessary licences, whether a certificate of completion exists and whether there are any planning proceedings. On rural land (suelo rústico) the rules are strict and unlicensed construction can be very hard to legalise.
4. Certificate of occupancy (cédula de habitabilidad)
In the Balearic Islands, a home needs a valid cédula de habitabilidad to be lived in and to connect utilities. We check that it exists and whether it is still in force. If it has expired, it must be renewed through the council with a technical report.
5. Energy performance certificate
Required to advertise and to sell or rent. We check that it is registered and valid.
6. Taxes and community fees
We ask for the latest IBI (council tax) receipt and, in apartment blocks, a certificate from the community of owners confirming there are no debts. We also check whether any special levies for building works have been approved but not yet paid.
7. Coastal and other restrictions
Properties close to the sea may be affected by Spain’s Coastal Law (Ley de Costas). Others may be in protected areas. We point out any limitation we can identify from the documents.
8. Holiday rental licences
If you are buying with the idea of letting to tourists, never assume it is allowed. Holiday rentals in Mallorca require registration and are heavily restricted, especially in Palma. We check whether a property has a registered tourist licence and whether it can be transferred.
The arras contract
Once buyer and seller agree, they usually sign a contrato de arras: a private contract with a deposit that commits both parties to complete by a set date. The wording decides what happens if either side pulls out. We draft or review it so that the price, the deposit, the completion date, the conditions (for example, mortgage approval), what is included and who pays each cost are clear.
The notary and completion
A sale in Spain is completed by signing the deed (escritura) before a notary. We coordinate with the notary, check the draft deed in advance and make sure that every document is ready: identity documents and NIE, the certificates above, bank details for the payments and, if needed, mortgage cancellation by the seller’s bank.
After the signing, the deed is presented for tax purposes and registered in the buyer’s name.
Taxes on a purchase or sale
- Buyer: transfer tax (ITP) on resale properties, or VAT plus stamp duty (AJD) on new builds bought from a developer, plus notary, registry and administrative costs.
- Seller: the municipal plusvalía tax and tax on any capital gain. When the seller is not resident in Spain, the buyer must withhold part of the price and pay it to the tax office.
We explain which taxes apply to your case. For a detailed tax calculation we always recommend a personal review.
Who this service is for
- Buyers, Spanish or foreign, who want to know exactly what they are buying before paying a deposit. See also our guide to buying property in Mallorca as a foreigner.
- Sellers who want their file ready before they advertise, so that the sale is not held up later. See how we sell property in Mallorca.
- Heirs who need to understand the situation of an inherited property.
- Anyone buying at auction, where checks must be done before bidding. See property auctions in Mallorca.
Frequently asked questions
Should I sign the arras contract before the legal check?
No. Do the check first. Once you have paid the deposit, walking away usually means losing it.
Can you check a property if I am still abroad?
Yes. The review is done on documents, so we can work by email wherever you are.
Is the notary not enough?
The notary checks identities, registry status and certain formalities on the day of signing. It does not check licences, physical differences or whether the price and conditions protect you. That is why the check should be done earlier.
Send us the documents
Write to us at info@inmobiliariapalma.es or use the contact form. Tell us which property it is, whether you are buying or selling and what documents you already have. We will tell you what is missing. We reply in writing, in English, Spanish, French or Russian.