Buying Property
We make the entire buying process safe, simple, and predictable.
Kraft Properties – Property Buying Advice in Mallorca at No Cost to You
STEP BY STEP
Understanding the Buyer’s Needs and Preferences
When a buyer contacts us, we begin by identifying their requirements and preferences. To better understand the client and their purchasing criteria, we usually arrange an online meeting via Teams, an in-person meeting at the client’s home or a meeting directly in Mallorca.
Once the purchasing criteria are relatively clear, we present suitable properties in several areas and use these as the basis for planning a viewing tour in Mallorca. We almost always introduce clients to different locations, helping them feel confident in their final choice of area and dream home.
Once the client has decided which area to focus on, we ensure that they are shown the best available properties in that location.
As an independent property advisor, Kraft Properties can present and facilitate the purchase of most properties for sale in Mallorca through our network of local estate agents.
We do not charge our clients a commission. Instead, we are paid by the collaborating estate agent, who shares with us the commission paid by the seller.
Should the client decide not to proceed with a purchase for any reason, the engagement may be ended at any time at no cost to the buyer – no cure, no pay.
Property Viewings – The Road Trip
We usually arrange one or more full- or half-day viewing tours with the client, most often travelling together by car. During these tours, we provide valuable information about the property market, the advantages and disadvantages of different areas, local infrastructure, price trends, the purchasing process, financing, taxation, inheritance, ownership structures and the bidding process itself.
When the client finds a property they would like to purchase, the next step is to negotiate a price acceptable to both the buyer and the seller.
As this is often an unfamiliar process in an unfamiliar property market, our guidance is particularly valuable at this stage. Our goal is to help the client secure the best possible price and purchase the right property for their budget, needs and preferences.
We then recommend one of our trusted local property lawyers, who can handle all legal matters, while we continue to guide and support the client throughout the entire purchasing process.
Ensuring a Secure Purchasing Process
The lawyer will verify, among other matters, that the seller is the legal owner and determine whether the property is subject to any outstanding debt, mortgages or other encumbrances. If everything is in order, an option or reservation agreement is normally prepared. This agreement reserves the property for the client while the final legal, financial and, where necessary, technical due diligence is completed. Upon signing this agreement, 10% of the purchase price is normally transferred to a notary’s account.
Before the purchase can be completed, the financing and all required documentation must be in place. If the client intends to finance the purchase with a mortgage, this should be clarified early to ensure that the process proceeds as smoothly as possible.
Through a recommended local lawyer, Kraft Properties advises clients on how best to structure the purchase, who should be registered as the legal owner or owners of the property and the possibility of securing favourable local financing. We can also provide introductions to trusted banking contacts in Mallorca and Luxembourg.
Anyone purchasing property in Spain requires a Spanish identification number, known as an NIE number. A Spanish bank account, insurance and other purchase-related documentation may also be required. The buyer’s lawyer, recommended by us, will normally assist with these arrangements.
Signing Before a Notary Public
Once all legal and financial matters have been finalised, the title deed – the Escritura de Compraventa – is signed before a Spanish notary. This constitutes the formal transfer of ownership from the seller to the buyer.
The buyer may attend in person or grant their lawyer power of attorney to sign on their behalf. The final settlement – the remaining 90% of the purchase price plus associated costs – is normally completed at the time of signing, after which the buyer receives the keys to the property.
Registration and Handover
Following the signing, the notary submits the change-of-ownership details to the local Land Registry. Once the registration has been completed, the buyer receives the final title deed confirming legal ownership of the property.
After the handover, several practical matters remain, including transferring electricity and water contracts, arranging insurance, updating community fees and dealing with any applicable taxes or charges.
We can assist with these practical arrangements, making the transition as straightforward as possible and helping you settle safely and comfortably into your new home in Mallorca.