Due Diligence of Spanish property, Essentials for Foreign Buyers

Every Property Has Secrets: Finding Them Before You Sign

In 2024, a British buyer signed a deposit contract on a 320,000€ villa near Orihuela Costa. The property looked move-in-ready. It wasn't. A basic title check revealed 18,000€ in unpaid community fees. Planning verification showed the pool terrace had been built without permission. The water certificate was forged.

The buyer walked away—but only because they commissioned independent due diligence before signing. Most foreign buyers don't. They rely on the seller's agent, the seller's documents, and hope.

Due diligence isn't about being paranoid. It's about being informed. Because in Spain's property market, what you don't verify can cost you tens of thousands—or leave you with a property you can't legally occupy.

The Due Diligence Framework: What We Verify

Professional due diligence in Spain follows a structured checklist across five key categories. At Prime Home Match, we conduct initial property verification checks before you commit, while your independent Spanish lawyer completes the comprehensive legal due diligence. The key areas to verify before purchase:

1. Title Verification and Land Registry (Registro de la Propiedad)

Your lawyer will obtain an official nota simple from the Land Registry showing:

• Current registered owner (matches seller?)

• Outstanding mortgages, liens, or embargoes

• Property boundaries and cadastral reference

• Any legal restrictions or claims

Red flag: If the seller isn't the registered owner, the sale cannot proceed legally. If there's an unresolved mortgage, you may inherit the debt.

2. Costa Blanca Planning Permissions and Urban Classification

Thousands of Costa Blanca properties are classified as suelo no urbanizable (non-urban land), where residential construction is restricted or prohibited. Others sit on land with planning issues that make extensions or renovations illegal.

What to verify:

• Urban vs. non-urban land classification

• Whether all structures have licencia de primera ocupación (habitation certificate)

• Any undocumented extensions, pools, or builds

Red flag: If the property is built on non-urban land without proper classification, it could face demolition orders.

3. Community Debts and Charges (Gastos de Comunidad)

Community fees often hide years of unpaid charges that become the buyer's legal responsibility upon transfer.

We request:

• Certificado de comunidad showing no outstanding debts

• History of community payments

• Confirmation of any upcoming special assessments

Red flag: Unpaid community fees transfer with the property. You inherit the debt.

4. Utility Connections and Certificates

Many resale properties on Costa Blanca lack proper utility documentation. Some have illegal water connections; others never obtained building completion certificates.

We verify:

• Legal water supply contract (not communal sharing or illegal hookups)

• Electricity supply and NIE registration

• Habitation certificate (cédula de habitabilidad)

• Energy performance certificate (valid and current)

Red flag: Properties without habitation certificates cannot be legally sold or mortgaged.

5. Tax Verification (IBI and Local Taxes)

We verify:

• IBI (property tax) payment history

• Plusvalía municipal (capital gains tax) calculations

• Any outstanding local taxes or fines

Red flag: Unpaid IBI can lead to property seizure. Sellers often "forget" to mention years of unpaid taxes.

Not sure what to look for—or how to check? That's where independent verification matters. We help you understand what's behind the paperwork before you commit.

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Why Seller's Agents skip due diligence of Spanish property

The agent representing the seller works for the seller — not for you. Their job is to close the sale, and due diligence can slow or even stop that process. Seller-side agents focus on moving their listings and their loyalty lies with the owners who pay their commission.

At Prime Home Match, we work exclusively for the buyer. Even with a completion fee that doesn't increase property price for you, we have no internal stock to push and no pressure to sell quickly. Our role is to search the entire market for you, compare every option, and negotiate the price down — not up, as seller-side agents are structurally incentivised to do.

Professional Support: Who Conducts Due Diligence?

In Spain, comprehensive legal due diligence must be handled by an independent Spanish-licensed lawyer (abogado) who specializes in property law. Under Spanish Bar Association (Colegio de Abogados) regulations and Spanish law, your lawyer must be completely independent of the real estate agent or developer to avoid conflicts of interest. This independence protects you: you get two independent experts working exclusively in your interests—your lawyer conducting full legal due diligence, and your buyer's agent (if you choose one) advocating for the best terms and price.

At Prime Home Match, we conduct initial property verification checks across key areas—title status, planning permissions, community debts, and utility documentation. However, full legal due diligence, including detailed contract review and comprehensive legal searches, must be completed by your independent lawyer. This separation of roles is mandated by Spanish law and ensures you receive objective, professional protection at every stage of your purchase.

We work with vetted legal partners across Costa Blanca who conduct due diligence in English or any preferred language, with plain-language summaries of findings.

Timeline and Costs

Due diligence typically takes 7-14 days. Legal fees for full property conveyancing in Spain generally range from 1% to 2% of the purchase price plus VAT (21%), though some lawyers offer fixed-fee packages. For a €300,000 property, expect to pay approximately €3,000-€6,000 plus VAT for complete legal services, which includes due diligence, contract review, notary coordination, and registration. This is essential buyer protection, not an optional expense.

What Happens If Problems Are Found?

If due diligence reveals issues:

• You can walk away and recover your deposit (if the contract includes a due diligence clause)

• You can renegotiate the price to reflect resolution costsBased on hundredsWe obtain an official

• The seller can resolve the issue before closing

Without due diligence, you have no legal basis to withdraw or renegotiate once you've signed.

Based on hundreds of property verifications, here are the most common issues we uncover:

• Undeclared structural modifications (enclosed terraces, extra bedrooms)

• Properties on non-urban land without proper reclassification

• Community debts exceeding €10,000

• Illegal pool installations

• Properties without habitation certificates

• Shared or illegal electricity/water supplies

• Unpaid IBI for 3+ years

• Forged energy certificates

Almost every property we assess on Costa Blanca, we and our trusted lawyers find at least one material issue that requires resolution before purchase.

Thinking of buying property on Costa Blanca? Don't sign anything until you understand what you're really buying. Contact us for a comprehensive due diligence with independent lawyers that protects your investment.

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