Property scams and red flags when buying in Mallorca

Outright fraud: payment and identity scams

The most damaging scams involve payments. Criminals intercept emails between buyer, agent and lawyer and send "updated" bank details; others advertise properties they do not own, often holiday rentals or bargains. Protect yourself by confirming any bank details by telephone with a number you already know, checking with the nota simple that the seller is the registered owner, and paying large amounts only at the notary or into accounts verified by your lawyer.

Red flags in the property itself

Red flag	What it may hide	The check
Built area larger than in the Land Registry	Extensions without a licence	Cadastre, licences, town hall file
"Pool and guest house can be legalised"	Illegal works on rustic land	Planning classification and infringement records
"Rental income guaranteed"	No licence or a non-transferable one	Tourism register and licence capacity
Price far below the market	Debts, occupants, legal disputes	Registry charges, court and community checks
Seller abroad and unreachable	Lack of authority or a disputed inheritance	Powers of attorney and inheritance documents
No habitability certificate	Building that cannot legally be lived in	Cédula de habitabilidad

Illegal buildings and "legalisable" promises

In Mallorca and the other islands, many villas and fincas have extensions, pools or annexes built without a licence. On urban land some can be legalised; on rustic land the options are often very limited, and an infringement may still be pursued. An agent's statement that something "can be legalised" has no legal value. See legalising illegal buildings and rustic land rules.

Rental licence claims

Holiday rental licences in the Balearics are limited and tied to rules on property type, capacity and, in some areas, zoning. A property advertised with "rental potential" or past bookings may not have a licence, or the licence may cover fewer beds than advertised. See buying with a tourist rental licence in Mallorca, Ibiza and Menorca.

Deposit traps in the contracts

• Reservation fees that are non-refundable even if the checks reveal a problem.
• Arras contracts without conditions for due diligence or a mortgage.
• Completion dates you cannot realistically meet.
• Deposits paid to an agent's account without clear instructions on when they are released.

See reservation and arras contracts.

Debts and occupants that follow the property

Unpaid community fees for the current year and the three previous years, and unpaid IBI, can be claimed against the property after you buy it. A property with occupants without title, or with a tenant whose lease continues, can also be difficult to use. See squatters in the Balearics and buying with a tenant.

How to protect yourself

Instruct an independent lawyer before paying anything, check the registry and the licences, and pay only against documents. Our documents checklist lists what to ask for. This guide is published by Castell.law, property lawyers in Palma; see our purchase lawyer service.