REAL ESTATE
In Mallorca, all land areas are categorized. For example, a piece of land could be categorized as urban land or rural land, more specifically for planning purposes, which is known as suelo no urbanizable. There are several other classifications that we will not go into further.
When buying a property that is located in a rural area or in a rural area, there are always certain risks. Some occur in each country, while others are specific to Mallorca. However, keep in mind that tens of thousands of foreigners have already bought plots of land in rural Mallorca without any problems. Only a few tens or hundreds of these buyers were negatively affected by these risks.
The first risk is that an adjacent land area could be classified as building land at a given time. Your beautiful and open views will then be blocked by dozens of homes, which is not really what you initially wanted. Just like in Germany, you can do very little to protect yourself against this risk. It gets worse if your property is near a built-up area, or if it has good communications, good views or other natural features that make it particularly attractive for construction projects. To customers who want to buy a property, I always say that the only really safe assumption is that any current land area can become a construction project in the future, no matter what anyone promises! If you are concerned about future construction projects, we can by inquiry determine which construction projects are currently planned, but we can not guarantee that a project will not be submitted the next day that will affect your property. The inquiries will not even guarantee that you can take action against the planning authority if something has not been reported to us. However, if the rural character of the place is important to you, it is probably worth making such a request, as the cost is usually low. If you would like us to make an inquiry, we will discuss with you the options available and the estimated costs.
The second risk is that most of these rural plots have been around for a long time. This means that legal issues have also accumulated in relation to real estate. Not all are obvious and not all of them have been entered in the land register. So you should always be aware of "suspicious" signs, such as conspicuous paths that run on your future property, lots of empty cartridge cases or other evidence of hunting on the property. If you find something of concern, you should discuss this with your lawyer immediately to see what action might be taken to clarify the situation.
The third and biggest risk is when your property itself is drawn into the process of development.
If in Majorca land owned by several people is selected for a development, the local authorities can deal with the situation in different ways. Often a "junta de compensación" is established, which is a committee of all owners of the land in question. This committee has the right to make important decisions about the planned redevelopment, such as who will do the work, how it will be financed, etc. As a member, you can vote, but if the other owners override you, you will follow their decisions bound.
Normally, infrastructure works such as the construction of roads, power stations, etc. are required. However, it would be extremely unfair if all this work takes place on your property so that nothing remains to you and, in turn, increases the value of your neighbors' land as a building plot. The junta will reassign the rest of the country after the infrastructure works in various ways to ensure that every owner receives a fair share of the land.
The owner of a property which is part of the development plan has several obligations:
In return, the owner has the right to benefit from the construction process in the same proportion as the other owners. There are several ways to accomplish this. One of these is that land ownership is simply redefined. If you owned 10% of the original area before construction, your boundaries will be changed to give you 10% of the available building land less the "dead" land.
If you do not want to participate in this redevelopment project, your choices are very limited:
Any object located on the property prior to the implementation of the development plan may remain there unless such area is needed for roads or public purposes. In this case, the owners will be compensated for this property. If you can keep your property, you will not be able to increase it. In practice, it is seldom possible for you to be able to stay in your house while the construction work is going on around you.
This system is very different from the country's UK development, but it usually works quite well.
The regulations governing the development of the country are an area that has been handed over to the autonomous regions under the Spanish Constitution. In 1994, special rules were adopted in the Valencian Community, which included the infamous LRAU (Ley de Regulación de la Actividad Urbanística). This law was intended to promote the development of backward areas where little development took place.
Unfortunately, greedy and unscrupulous developers have recently (in the last 2 or 3 years) found a way to abuse this law. Unfortunately, the region of Andalusia (which includes the entire Costa del Sol) has unfortunately decided to introduce similar changes.
Under this law, the city council has the right to allow a contractor who has nothing to do with the area to submit or "promote" a development plan. Although the residents are protected in theory in various ways, this can lead to abuse. The developer can acquire relatively small plots of land in the area and can often dominate the process by turning the decisions taken to his advantage. For example, if the junta decides to finance the development plan itself instead of considering bank financing, then the land must be sold out as a building lot by any owner who can not pay his share. This price is usually much less than this would be the case after completion of the work. The costs of the infrastructure can also be oversized and important contracts can be awarded to friends.
Many successful and fair development plans have been implemented under this law, but there is no doubt that it is susceptible to abuse. This was also recognized by the Government of Valencia, whose public works council has proposed significant improvements to this law. The British Ambassador of Spain and the local British Consulate have also voiced their concerns. The current law is considered unconstitutional, so this case may be brought before the Supreme Court in Spain and probably the European courts. Other major reform proposals have also been made, with a resolution of the case likely to take several years. What can be done in the meantime?
If you continue to worry, you should buy a property elsewhere, as this law only applies to the region of Valencia and possibly Andalusia. Then write to the governments of Valencia and Andalusia and tell them why you did not buy in this area!
If you already own a property that is affected by this problem, you should act quickly and not put your head in the sand. A quick action could improve your situation, whereas a delay may be fatal, so you should seek your lawyer immediately.
El número de compradores extranjeros que compran una finca en Mallorca ha aumentado dramáticamente en los últimos años.
Los altos precios y el hacinamiento en las costas españolas han llevado a los compradores de vivienda españoles a trasladarse al interior, mientras que las mejoras de infraestructura financiadas por la UE han hecho que las áreas rurales sean más viables que las áreas residenciales.
Many programs on television that reflect a picture of rural bliss have also played their part in promoting demand for Spanish fincas, but at the same time have ignored many of the problems that can make this experience so frustrating. While a rural property in Spain may be a good option for some people, for others it is a misguided fantasy of rural happiness that can go awry very quickly.
Owning a rural property in Spain is very different compared to a purpose built development on one of the Costas. The country life, even a few kilometers inland, has its own rhythm, which has not yet unlocked the modern world. If you want to make the effort and try out the rural lifestyle of Mallorca, you will experience a quality of life that is virtually extinct in the UK and other northern European countries. But if you do not, you'll probably be lonely and frustrated.
Above all, foreign buyers need to be realistic about their reasons for buying fincas in Mallorca, but also be extremely cautious about how to buy them.
El mayor problema para los compradores de habla alemana puede estar en la búsqueda de un agente inmobiliario competente. Los españoles generalmente compran propiedades rurales a través del boca a boca o comerciantes locales, que se llaman corredores y usualmente cobran el 1% del precio acordado de ambas partes. Los compradores británicos, por otro lado, tienden a ser más escépticos sobre el trato con la nueva generación de agentes inmobiliarios británicos que han surgido en la emergente industria inmobiliaria española.
If a British buyer uses the services of a British broker in the rural areas of Spain, this can be compared to a blind man trying to lead another blind man. Many of these brokers are immigrants who sell real estate for lack of professional alternatives. Badly informed and with ridiculous Spanish skills that prevent them from understanding even the most basic legal documents, these estate agents try to sell rural property to naive British buyers. The fact that their customers usually know only slightly less is their biggest feature, but even worse is the fact that they often demand incredible commissions of up to 35% on cheaper real estate. The widespread opinion that Britons do not cheat other Britons about selling real estate in Spain is very far from reality.
Here are a few tricks that foreign brokers use to sell rural property in Mallorca:
Buying fincas in Majorca is a complex business, so the help of real experts may be needed if you want to avoid serious problems. This can not be traced back to any sinister intent on the part of a rural provider to foreign buyers. It simply reflects the fact that buying property in Mallorca can lead to various ownership issues and problems. The purchase can also quickly become a nightmare if issues such as redevelopment, mortgages and access to rural areas are not resolved competently and on time. My advice is to work only with British agents who have at least 10 years experience in the rural real estate market and can speak fluent Spanish. The ideal solution if you want to buy a finca in rural areas, is to contact an experienced broker covering some popular parts of Mallorca.
Title deeds, or the lack of these, is another big problem in rural areas of Mallorca. Barbara Wood, a broker with many years of experience in rural areas of Mallorca, says, "After more than a decade in the industry, I have yet to see a proper title deed."
In the worst case, the title deeds do not exist, which, according to Woods, is a no-go for British buyers. In rural Mallorca, there are many legitimate claims to property that were never formalized in notarial property deeds. While it is possible to buy these properties, British buyers would have to deal with more problems than they value. Therefore, always keep your fingers off a property if there is no proper title deed.
However, frequent title deeds can be found which do not correspond to the floor space that is actually offered for sale. Also, a title deed can not reflect the true size or even the presence of a property. While it is usually possible to solve these problems satisfactorily before purchasing, once you have bought, you are on your own with the problems and will mostly not get any help from the sellers. You need to spot any ownership issues in good time (which many UK buyers do not) and discuss the solutions with the sellers. The golden rule when buying in rural areas is that you should never buy until the title deeds are in order.
There are still relatively few renovated properties in the rural market of Mallorca, although this should change in the future. For the moment most fincas require extensive work to be habitable.
The problem is that many buyers overestimate the building permit they receive and underestimate the cost of a refurbishment (often because of the advice of the UK broker). The days when you could buy an old finca and renovate it for almost nothing are long gone, so you should beware of anyone who says otherwise. In addition, restorations in the rural area of Mallorca are not cheap, so they should be done with care and only with the help of a trusted project manager or the client.
Construction and transit permits are currently very stringent in many rural areas of Mallorca and you can only expect to get permission for refurbishment of existing and registered properties rather than increasing floor space or building new ones. Since most Spanish country homes will need new piping, electrical wiring, flooring, moisture control and plastering, not to mention a new kitchen and bathroom, you will need at least a budget of 50,000 euros (75,000 euros or more if a pool is involved). When doing renovations, you should always work with local builders and not with British rogues. Note that many UK real estate agents in rural areas of Mallorca recommend a construction company that pays them a commission, which can increase the renovation work to 5% to 10%.
If you are looking for a rural peace and birdsong, then you should purchase a rural property with an existing connection to the mains. If you do not do this, you might be driven crazy by the noise of your generator. Connecting to the local power grid can be a devastating experience in terms of time and money.
Access to water is another critical issue, as few fincas in Mallorca are connected to the water mains. However, this is usually not a problem since it can easily be built into a deep well in all but the driest parts of the country. However, it is important to know the water situation before you buy, because living without water in a rural estate can be very difficult.
Another crucial point to consider when buying a finca in rural Mallorca is how to get along with the local community. This question is especially important if you want to permanently move to a rural area of Mallorca. A few clever and experienced words by Rita Fryer will help to illustrate the meaning of this question:
One important point I want to draw people's attention to is the amazing attitude that many people have when they shop in the interior. Brits who buy a finca in rural parts of Mallorca understand that the easiest way to happiness and acceptance is to respect local traditions. You can find hundreds of happily integrated Britons across Mallorca, with the key being community involvement. This is an important point that should not be overlooked.
Mortgage problems, rights of way, hunting rights, land grabbing and septic tanks are some other issues that should be considered in detail before you buy a finca. You can definitely find your rural idyll in Mallorca, but only if you make a purchase for the right reasons, with the right professionals and with the utmost care. Otherwise, there is a realistic chance that you will end up being another and desperate buyer who is sobbing in a hotel lobby in rural Mallorca.
