Due Diligence: make sure everything is in order​

Before signing the public deed and paying the price of the property, it’s essential to carry out real estate due diligence, that is, a legal and technical review of the property to make sure there aren’t any issues that could affect the purchase.

Although some of these checks can be done by the real estate agency or the bank, it’s best for a lawyer who specializes in real estate law to review them independently, especially if you’re a foreigner or aren’t familiar with Spanish law.

Spending a few hours in this phase can prevent legal problems, unexpected expenses, or even the inability to sell the home in the future.

We carry out all this service for our clients.

1. Request a simple note from the Property Registry

The simple note is one of the most important documents in any real estate sale.

This is an informative document issued by the Property Registry that allows you to know the legal status of the property.

Thanks to her, you’ll be able to check:

• Who is the legal owner of the property.
• If there are several owners.The registered area.
• The registry description of the property.
• If there are any pending mortgages.
• Seizures.
• Easements.
• Usufructs.
• Prohibitions on selling or other charges.

 It’s recommended to request an updated simple note a few days before signing to make sure the registry situation hasn’t changed.

2. Check if there are any liens or debts

Not all charges are shown the same way, so it’s worth checking different aspects.

Mortgages

If the property has a mortgage, it must be paid off or assumed according to what was agreed before or at the time of the sale.

Court seizures

A lien can prevent or make it difficult to transfer the property.

Never sign the purchase without knowing exactly how it will be canceled.

Debts with the homeowners’ association

Request a certificate issued by the administrator or the president of the community confirming that the seller is up to date on paying the community fees.

Otherwise, certain debts could affect the new owner under the terms provided by the law.

Property Tax (IBI)

Ask for the latest IBI receipt to make sure it’s paid and to check the property’s cadastral details.

3. Check the urban planning situation and the legality of the house

It’s not enough for the property to exist physically; it also has to comply with urban planning regulations.

It’s recommended to check:

• That the property has the necessary licenses.
• That there are no ongoing urban planning files.
• That any extensions, enclosures, or renovations carried out were legalized.
• That the built area matches the registry and cadastral information.
• That the use of the property is in accordance with urban planning.

These checks are especially important in single-family homes, rural properties, and older buildings

If you buy a newly built home, also check that it has the certificate of first occupancy or the equivalent document when required.

4. Request the Energy Efficiency Certificate

Every property sold in Spain must have an Energy Efficiency Certificate (CEE)..

This document rates the property’s energy consumption on a scale from A (highest efficiency) to G (lowest efficiency).

The certificate provides information about:

• Estimated energy consumption.
• CO₂ emissions.
• Level of insulation.
• Recommendations to improve energy efficiency.

Although a low rating doesn’t prevent the purchase, it can signal higher spending on heating, air conditioning, or electricity.

5. Is it recommended to do a technical inspection?

Yes, especially if it’s a used property or several years old.

Although it’s not always mandatory, an inspection carried out by an architect or a technical architect can spot problems that aren’t visible during a visit.

Among other things, you can check out:

• The amount of the monthly fee.
• If there are any approved or planned special assessments.
• The financial status of the community.
• The internal rules of coexistence.
• The common services included (elevator, pool, gardens, security, etc.).

A community with significant debts or with outstanding extraordinary projects can significantly increase future expenses.

7. Check that all the supplies are in order

Before signing the deed, make sure that the supply contracts can be transferred without any issues and that there are no outstanding debts.

Among them:

• Electricity.
• Water.
• Gas.
• Internet and phone service, if installed.

It’s also a good idea to make sure the facilities meet current regulations and don’t need an immediate update.

Checklist before buying

Before going to the notary, make sure you’ve checked the following points:

✔ Updated simple note from the Property Registry.
✔ Identity and ownership of the seller.
✔ No mortgages, liens, or other charges, or a clear agreement on their cancellation.
✔ Certificate showing that payments to the homeowners’ association are up to date.
✔ Last property tax (IBI) receipt.
✔ Urban planning status and housing licenses.
✔ Energy Efficiency Certificate.
✔ Technical inspection, especially for resale properties.
✔ Condition of utilities and the possibility of changing ownership.

Don’t assume that a property is fully legalized just because it’s listed by a real estate agency. Doing a complete due diligence before signing the deed is one of the best investments you can make, as it will allow you to buy more confidently and avoid legal or financial problems once you become the owner.