Property Due Diligence in Spain — What Your Lawyer Checks Before You Sign

In Spain, the phrase "buyer beware" applies with unusual force. Unlike the UK, for example, there is no automatic seller disclosure process and no equivalent of a home information pack. The burden is on the buyer — and the buyer's lawyer — to uncover any problems with a property before contracts are signed. If you complete a purchase without checking for debts or planning issues, you may inherit them.

This page explains every element of a thorough property due diligence in Spain, and why skipping any part of it can cost far more than the lawyer's fee.

Why Buyers Inherit Debts in Spain — The Key Legal Principle

Under Spanish law, certain debts are attached to the property itself, not to its owner. This means that when you buy a property, you can become responsible for debts the seller left behind — even if you had no idea they existed. The most common examples are:

• Unpaid community of owners fees (cuotas de la comunidad de propietarios) — under the Ley de Propiedad Horizontal, the buyer inherits the current and previous year's unpaid community fees.
• Unpaid IBI (local property tax) — the municipality can pursue the new owner for arrears if they are not settled at completion.
• Mortgages and charges registered against the title — these must be cancelled or assumed by the buyer, and the cost of cancellation must be accounted for in the purchase price.

This is why due diligence is not a formality — it is the mechanism by which a buyer protects themselves from acquiring someone else's financial problems.

Land Registry Search (Registro de la Propiedad)

The starting point for any due diligence is obtaining a nota simple — a current extract from the Land Registry for the specific property. The nota simple confirms:

• The identity of the registered owner — confirming the seller has the legal right to sell
• The precise legal description of the property — surface area, boundaries, built area
• Any mortgages (hipotecas) registered against the property
• Any other encumbrances (cargas) — easements, rights of way, embargoes, annotations of legal proceedings
• Any conditions or restrictions attached to the title

A buyer's lawyer will always obtain a fresh nota simple shortly before completion, as well as during the initial due diligence phase — because new charges can be registered between those two dates.

Community of Owners — Fees and Pending Decisions

If the property is part of a comunidad de propietarios (a residential development with shared facilities), the buyer's lawyer should request a certificate from the community administrator confirming that the seller has no outstanding debts. Under Spanish law, a buyer takes on the community fee debt for the current year and the previous year if it is unpaid at the time of purchase.

The community certificate is also important for other reasons. It will disclose:

• Any approved but not yet levied special charges (derramas) — for example, a vote to replace the lift or repair the roof, where a large bill is coming
• Any pending legal proceedings by or against the community
• Whether the community has voted to restrict or prohibit tourist rentals (relevant if you intend to rent the property)

We always obtain this certificate and review the community minutes before advising clients to proceed.

IBI Arrears and Local Tax Certificates

IBI (Impuesto sobre Bienes Inmuebles) is the Spanish equivalent of council tax or rates — an annual municipal property tax. Unpaid IBI creates a tax lien on the property that can be enforced against a new owner.

Your lawyer should request the IBI payment receipts for the current and previous years, or obtain a certificate from the local council (Ayuntamiento) confirming no arrears exist. It is also standard practice to apportion the current year's IBI between buyer and seller on the completion date.

Urban Planning and Building Compliance

One of the most serious areas of risk for buyers in Spain — particularly on the Costa del Sol — is urban planning compliance. Spain's planning history includes large numbers of properties built with inadequate licences, built on land reclassified after construction, or extended without permission.

Your lawyer should check:

• The building licence (licencia de obras): Was a valid building licence obtained for the property's construction? A property built without a valid licence may be subject to a demolition order, although in practice time-limitation rules (prescripción) often protect older illegal constructions.
• First occupation licence (licencia de primera ocupación or cédula de habitabilidad): This certificate confirms the property was inspected and found to meet habitability requirements. Without it, utility companies may refuse to connect services and tourist re-registration may be impossible.
• Urban classification of the land: Is the property on urban land, developable land, or protected rural land (suelo no urbanizable protegido)? Properties on rural land can have very restricted rights to expand, rebuild, or change use.
• Informe urbanístico: A report from the Ayuntamiento confirming the planning status of the plot, any applicable planning restrictions, and whether any sanctioning proceedings are open against the property.

Cadastral Data and Registry Consistency

In Spain, the Land Registry and the Cadastre (Catastro) are separate databases that do not always agree with each other. The Cadastre is maintained by the tax authority and reflects the property for tax valuation purposes. The Land Registry reflects legal title.

Discrepancies between the two — in surface area, boundaries, or the description of buildings — are common and can cause significant delays and costs if not identified and resolved before completion. Your lawyer should check both databases and flag any inconsistencies for resolution as part of the purchase.

Pending Legal Proceedings

The Land Registry nota simple will disclose any court-ordered embargoes or annotations of legal proceedings. However, proceedings that have not yet been registered — for example, a seller currently defending a lawsuit that may result in an embargo being registered — may not yet be visible.

In higher-value transactions or where there is any reason for doubt, additional searches and inquiries may be warranted. Your lawyer's experience and judgment is critical in assessing when additional investigation is required.

Due Diligence on Tourist Licence Properties

If the property you are buying has a tourist licence — or you intend to obtain one — the due diligence must also include a check of the tourist licence register. This means verifying the existing licence status, checking for pending sanctions, and confirming the physical and planning conditions required for re-registration are met. See our partner site licenciaturisticaandalucia.es for specialist support on the licence process.