NEWS

Due Diligence in the sale of real estate in Spain is the process of thorough investigation and verification conducted by a buyer (or their lawyer) before the purchase is finalized. The goal is to examine all legal, financial, technical, and urban planning aspects of the property to identify risks, hidden defects, and future problems. The process typically includes the following steps: 1. Legal Due Diligence: Checking the property registry (Registro de la Propiedad) and the cadastre (Catastro) to confirm the owner, identify any mortgages, embargoes, usufruct rights, or other encumbrances. The urban planning situation is also investigated to verify if the property was built legally and complies with all permits. 2. Financial Due Diligence: Investigating whether there are outstanding municipal and regional taxes (IBI, garbage tax) or debts with the owners' association (communidad de propietarios), which are mandatory transferred to the new owner. 3. Technical Due Diligence (Building Inspection): A detailed inspection of the building's condition, its installations (electricity, water, gas), and the presence of any defects such as damp, cracks, or asbestos. 4. Utility Check: Verifying the connection and contracts for water, electricity, and gas, and their payment status. Without proper Due Diligence, a buyer risks becoming liable for debts, fines for illegal construction, or costly repairs.