The option contract:

Normally it will takes a few weeks until both parties are able to sign the final notarial contract of purchase. Therefore it is very common to sign an option contract or private written letter of intent. If the purchaser has definitely decided to acquire the property, the option contract could be recommendable. In this contract, the vendor gives the purchaser right to acquire the property within the fixed period of time and at a determined purchase price. Within that period the vendor must not sell the property to a third person.

Usually, the option fee is 10% of the purchase price and will be taken into account in the case of purchase. This creates a certain legal security for both parties. In most cases a certain amount of money is agreed as a compensation payment, if one of the parties withdraws from the purchase or the sale. Nonetheless, the safest surest way to acquire real estates on Majorca is the notarial contract of sale.