Spanish Property Due Diligence: Complete Checklist for International Buyers
Due diligence is the most important pre-purchase step in a Spanish property transaction. This guide provides the comprehensive checklist used by experienced Spanish real estate lawyers. A dedicated lawyer conducts each verification.
Title verification
The lawyer obtains a nota simple from the Land Registry showing: current registered ownership; any mortgages or charges; any easements or limitations; any pending litigation. The nota simple is the authoritative public record. The lawyer verifies that the seller is the registered owner, that property description matches reality, that no undisclosed encumbrances exist.
Urban-planning verification
The lawyer obtains certifications from the town hall: urban-planning status (compatibility with PGOU); licence of first occupation or cédula de habitabilidad; absence of urban-planning irregularities; status of any pending procedures. Urban-planning irregularities (extensions, pools, modifications built without licence) are common and must be identified.
Cadastral verification
The cadastre records the physical description (surface, location, construction details) and the cadastral value. The lawyer verifies that cadastral description matches Land Registry and physical reality. Discrepancies must be resolved before purchase or addressed in contract because they affect IBI, ITP calculation, and future transactions.
Debt verification
The lawyer verifies status of: IBI for current and previous years (up to 4 years can survive transfer); plusvalía from previous transfer if unpaid; community fees (up to 2 years survive transfer); utility bills; any other administrative debts. Certifications from town hall and community administrator are essential.
Mortgage verification
If property has outstanding mortgage, the lawyer verifies outstanding balance and arranges cancellation at closing. Standard procedure: buyer's cheque to seller's bank for outstanding amount at closing; bank issues cancellation; cancellation deed registered. The lawyer coordinates with banks for smooth execution.
Energy efficiency certificate
Current certificate (less than 10 years old) is mandatory for sale. The seller must provide it at the public deed. The certificate rates property A-G and provides improvement recommendations. Penalty for selling without current certificate. The lawyer verifies availability.
Tourist licence verification
For properties marketed with tourist licence or intended for short-term rental, the licence verification is critical: existence, validity, NRA status, compliance with current regulations, transferability to buyer. In restricted zones, the licence has substantial economic value that must be properly verified.
Community of owners
The lawyer obtains community certifications: outstanding fees; restrictive statutes (especially on tourist rental for investor buyers); pending litigation; recent or planned major works. The community status affects ongoing ownership obligations and is essential to understand before purchase.
Search for occupants
The lawyer verifies that property is unoccupied or that any tenants have terminated leases. Spanish tenancy law provides strong tenant protection; buyer cannot easily remove sitting tenants. Long-term leases must be respected by new owner. Verification before purchase prevents surprises.
Action steps
First: engage independent Spanish real estate lawyer at start of purchase process. Second: provide lawyer with basic property information for due diligence. Third: receive written due diligence report before signing option contract. Fourth: discuss any issues identified and decide on response (price adjustment, contract conditions, withdrawal). Fifth: proceed to option contract and public deed with full understanding. For consultation, contact our team.
Due diligence is the buyer's primary protection against post-purchase problems. The cost of thorough due diligence is modest relative to the property value. Investment in qualified professional due diligence is the best protection.