Many Estate Agents will tell you that all the costs of sale are paid by the Buyer or Buying Entity when you sell you Property in Mallorca.  This is simply not true and therefore many Sellers are surprised when, commission aside, they do not receive the full amount they are expecting.

So, what cost are you responsible for when you sell a Property in Majorca.  Firstly (and it will state this in the Option Contract) the property must be sold free of any debts, liens and embargoes which includes any outstanding bills and mortgages.

At the Notarial Act, you must prove that the following have been paid:

- Council Rates.  If you are the owner of a property on the 1st of January, you are legally responsible for the payment of the Rates for that year and therfore must have proof of this payment or, monies will be withheld by whoever is adminstering the  deed to cover these costs.  Any proporcional agreement of the rates for the year is down to negotiation and independent of the Notarial act.

- Community Fees.  If Applicable, you must show that all Community fees up until  the date of sale have been paid with a Certificate from the Community Administrator.

- Utility Bills.  All utility bills but be up to date including electric, water & telephone if all installations are being included as part of the sale.

- Mortgage.  When there is mortgage on the property, the Notarial Act of the purchase includes the witnessing of the Cancellation of the Mortgage with the representative of the Mortgage lender.  The amount apportioned to the mortgage does not only include the final settlement figure for the outstanding capital but also all associated costs including: Notarial Costs for Mortgage Cancellation, Land Registry Costs for Mortgage Cancellation, Cancellation Fees (as per the Terms & Conditions of the Loan) and the Admistrative Costs associated with the mortgage cancellation.

- Plusvalía.  Impuesto Municipal sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana. This is a Council Tax on the Increase in the Rateable Land Value of the Property. It has been customary in Mallorca for the Buyer to pay this however, legally, it is the sellers obligation to pay for this as it is a tax levied on the property during the term of ownership up to a maximum of 25 years.

- Estate Agency Fees.  The commision agreed with the Esate Agency that has negotiated the sale of the Property.

As you can see, there are various costs associated with Selling Property in Mallorca and they are ceratainly not all paid for by the buyers so beware of anyone who tells you otherwise.

 

 

Please contact cskMallorca if you require any further information.