Due Diligence When Buying Property in Mallorca
- coastprojectsmallo
- Nov 15
- 3 min read
Buying a property in Mallorca can be a fantastic opportunity — but also a major risk if the right checks aren’t carried out from day one. In Spain, and especially in the Balearic Islands, the buyer is responsible for verifying that the property is legal, compliant, and free of hidden issues.
At Coast Projects, we work with international buyers who want clarity, safety, and a trusted professional on the island. Our due diligence combines legal, technical, and administrative review to ensure that the property is exactly what the seller claims — so you can buy with confidence.
What Is Property Due Diligence?
Property due diligence is a full legal and technical investigation carried out before signing any document (including reservation contracts).
Its purpose is to verify:
that the property is legal,
that it matches the approved plans,
that there are no hidden debts,
and that it can be used as intended (living, renovating, renting, etc.).
In Mallorca, this step is essential because many homes have:
undocumented extensions,
old or missing building licences,
protected-area restrictions,
structural or humidity issues,
pending urban files,
or debts unknown to the buyer.
1. Legal Due Diligence Checklist
✔ Title & Ownership Verification
Registry extract (Nota Simple)
Legal ownership
Pending inheritance, disputes, seizures, or limitations
✔ Urbanistic & Planning Legality
We verify the complete legality of the property:
Original building licence
Approved architectural project
Completion certificate
Urbanistic status (rustic, protected, coastal area, etc.)
Legality of additions: pools, terraces, extra rooms, garages, porches, etc.
✔ Administrative & Tax Checks
IBI, garbage tax, and municipal fees
Community of owners situation
Utility status (water, electricity, debt checks)
✔ Holiday Rental Licences (ETV)
If the property includes a rental licence:
type of licence (ETV, ETV-PL, ETV-60)
validity and transferability
restrictions depending on municipality
2. Technical Due Diligence Checklist
A legal property can still have expensive structural or installation problems. Our technical review covers:
✔ Structural Condition
Cracks
Moisture / capillary damp
Foundation and load-bearing elements
✔ Roof & Façade Condition
Waterproofing
Insulation
Ageing and required repairs
✔ Installations
Electrical installation & grounding
Plumbing
Heating/cooling systems
Sewage and drainage
✔ Future Renovation Feasibility
Before you buy, we confirm whether your renovation ideas are actually possible:
municipal regulations
protected building restrictions
limits on extensions, terraces, roof changes
impact of zoning laws
3. Why Due Diligence Matters in Mallorca
Mallorca is a unique market with:
older buildings,
complex urban regulations,
and stricter rules in rustic or protected areas.
Common issues we identify normally:
illegal extensions you cannot legalise,
impossibility of obtaining a rental licence,
errors in the square metres declared vs. real metres,
pending municipal sanctions.
old structures requiring full reinforcement,
basement or roof moisture,
or drainage problems,
A complete due diligence prevents you from inheriting these problems.
4. Why Work With Coast Projects
We offer a combined, independent approach:
A full 360º analysis from lawyers and technical experts.
✔ We are independent
We don’t sell properties, we protect the buyer.
✔ Specialists in international clients
We simplify the entire process for buyers who live abroad.
✔ We negotiate for you
With agencies, sellers, banks, architects, and town halls.
✔ Clear reports, real risks, and practical solutions
So you can make an informed decision.
5. Our Due Diligence Process
1. Initial Document Review
We analyse all available documents before you sign anything.
2. Legal & Urbanistic Audit
Registry, planning legality, licences, taxes, debts.
3. Technical Inspection
Structure, installations, moisture, roof, façades, feasibility of future works.
4. Risk & Cost Report
We deliver a detailed report with all risks and recommendations.
5. Negotiation & Contract Protection
We prepare or revise the reservation, deposit contract (arras), and private purchase agreement.
FAQs – Due Diligence in Mallorca
Is due diligence mandatory?
No, but highly recommended. It is the only way to avoid legal and structural risks.
How long does the process take?
Normally 5–10 business days, depending on municipal documentation.
Can you do this if I’m not in Mallorca?
Yes. Many of our clients buy from abroad with full representation.
Do you help with financing?
Yes. We collaborate with banks to secure the best possible mortgage options.
Thinking of buying a property in Mallorca?
We help you buy safely — with clarity, independence, and full protection from day one.
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