Buying in Paradise Comes With Legal Risks
Palma de Mallorca is one of the most attractive property markets in Spain — but for foreigners unfamiliar with Spanish real estate law, it’s also full of legal traps.
Common issues include:
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Contracts that favor sellers or agents
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Properties with hidden debts or planning violations
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Underestimated taxes and costs
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Miscommunication due to language or bureaucracy
💡 The solution? Work with a local, independent legal team from the start.
❌ Common Legal Pitfalls in Palma for Foreign Buyers
1. 🧾 Signing the Reservation or Arras Contract Too Early
Agents often pressure buyers to secure the property before legal checks.
🚫 Problem: These agreements are legally binding, and a buyer can lose their deposit (typically 10%) if they withdraw.
✅ Solution: Never sign until a lawyer reviews or drafts the arras contract with proper escape clauses.
2. 🔍 No Proper Due Diligence or Title Check
Some properties in Palma:
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Lack proper building permits
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Are built on protected land
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Have boundary or zoning issues
✅ Solution: A lawyer must verify the title, urban classification, licenses, and debts via the Land Registry and Catastro.
3. 🔗 Buying Property With Undisclosed Debts
Buyers may unknowingly inherit:
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IBI (property tax) arrears
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Community fees
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Mortgages or liens
✅ Solution: We check the Nota Simple, utility receipts, and financial history before you pay anything.
4. 🛠️ Illegal Renovations or Non-Habitable Properties
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Extensions without a license
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No occupancy certificate (cédula de habitabilidad)
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No energy certificate
These can affect your ability to rent, renovate, or even register utilities.
✅ Solution: Full urban planning review and license verification is essential.
5. 🧑💼 Relying on the Seller’s Agent or Developer
Agents are not legally required to represent your interests. Their job is to close the deal — not protect you.
✅ Solution: Only an independent buyer-side lawyer can ensure your rights are covered and contracts are fair.
6. 💶 Underestimating Final Costs
You must budget for:
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ITP or VAT
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Notary and registration
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Lawyer and POA fees
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Ongoing taxes
✅ Solution: We prepare a detailed cost estimate tailored to your case before you commit.
7. ✈️ Not Setting Up Power of Attorney If Buying Remotely
Many buyers fly in just to sign — or miss deadlines because they didn’t set up POA.
✅ Solution: Borderless Lawyers arranges remote POA, notarized and apostilled, so you don’t need to be in Spain.
🧑⚖️ How Borderless Lawyers Prevents Mistakes
We protect foreign buyers with:
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Bilingual contracts and full legal review
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Custom clauses to protect your deposit
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Urban planning checks and tax analysis
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Pre-purchase NIE, POA, and Spanish bank account setup
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Clear explanations of every document and decision
📞 Buying in Palma? Don’t Risk Expensive Surprises
From luxury villas to beachfront apartments, we help you buy in Palma the right way — with peace of mind and zero hidden risks.