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Key Takeaways
- Pull the Nota Simple before anything else. This Land Registry extract confirms the seller is the registered owner, describes the property boundaries, and reveals any outstanding liens (cargas) or legal disputes — your lawyer orders it, but know what’s being checked.
- The First Occupation License (licencia de primera ocupación) must exist. Missing or non-matching permits can indicate unpermitted construction — in the worst cases, properties have been subject to demolition orders on the Costa del Sol.
- Community fees and IBI arrears transfer with the property. Request a certificate of no community debt and confirm IBI is paid up to completion — outstanding debts become yours the moment you sign.
- An Energy Performance Certificate is legally required for all property sales in Spain — if the seller doesn’t have one, they must obtain it before completion. Use the sale process to also check buildings insurance coverage and utility account status.
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Property Due Diligence Checklist for Spain
Before you sign the binding contract, verify these items. Your lawyer should handle most of this—but you should know what's being checked.
Legal Status of the Property
Nota Simple (Registry Extract)
- Property is registered at the Land Registry
- Seller is the registered owner (or has authority to sell)
- Description matches what you're buying (size, boundaries)
- No unexpected charges or liens (cargas)
- No ongoing legal disputes (litigios)
Red flag: Property not registered, or registered under different owner.
Planning Permission
- First Occupation License (licencia de primera ocupación) exists
- Building matches approved plans
- No urban planning infractions (infracciones urbanísticas)
- Property is in urban, not protected/rustic, zone (unless intended)
Red flag: Unpermitted construction, pending demolition orders.
Catastro (Cadastral Registry)
- Property appears in the catastro
- Size matches registry and reality
- Boundaries are consistent
- Cadastral value is available (needed for tax calculations)
Red flag: Discrepancies between catastro, registry, and physical property.
Financial Status
Community Fees
- Certificate of no debt from the community administrator
- Current on all payments
- If debts exist, negotiated off purchase price
Red flag: Large outstanding debts, history of non-payment.
IBI (Property Tax)
- Current year paid or prorated at completion
- No prior year arrears
- Receipt or certificate provided
Red flag: Years of unpaid IBI (can become liens).
Utility Bills
- Electricity account in good standing
- Water account in good standing
- No disconnection notices
- Contract details available for transfer
Red flag: Disconnected utilities, large arrears.
Mortgage/Charges
- Any existing mortgage identified
- Confirmation mortgage will be canceled at completion
- No other financial charges (embargos, liens)
Red flag: Mortgage balance exceeds sale price.
Building and Community
Community Documentation
- Copy of community statutes (estatutos)
- Recent meeting minutes (actas) – last 2-3 years
- Current annual budget
- Reserve fund status
- Any planned special assessments (derramas)
Red flag: Depleted reserve fund, major works planned, high delinquency.
Rental Restrictions
- Can you use the property as you intend?
- Short-term rental restrictions checked
- Any rental licenses required in this municipality?
Red flag: Community ban on short-term rentals if you planned to rent.
Insurance
- Building insurance policy exists
- Coverage is adequate
- Premiums are current
Red flag: Lapsed insurance, inadequate coverage.
Physical Condition
Structural Survey (If Appropriate)
- Consider independent survey for older properties
- Check for damp, cracks, subsidence
- Electrical system adequate
- Plumbing in good condition
- Roof condition (if relevant)
Red flag: Obvious structural issues, hidden damp.
Certificates
- Energy Performance Certificate (required for all sales)
- ITE certificate if building is old enough to require it
- Pool certificate if applicable
Red flag: Missing mandatory certificates.
What's Included
- Fixtures and fittings list agreed in writing
- Furniture inventory if included
- White goods, air conditioning units, etc.
Red flag: Verbal promises not in contract.
Seller Verification
Identity
- Seller's ID verified
- If company selling, authority to sell confirmed
- If inherited property, succession documents complete
- If multiple owners, all agree to sell
Red flag: Unclear ownership chain, disputed inheritance.
Authority
- If selling via power of attorney, POA is valid
- POA specifically authorizes this sale
- POA is recent and not revoked
Red flag: Old POA, limited authority.
Contract Terms
Reservation Contract
- Deposit amount reasonable (€3,000-€10,000 typical)
- Refund conditions clear
- Timeline to full contract specified
- Property correctly described
Private Contract (Arras)
- Deposit amount clear (typically 10%)
- Type of arras specified (penitenciales vs confirmatorias)
- Completion date realistic
- All conditions spelled out
- Included items listed
- Penalty clauses understood
Escritura (Deed)
- Matches private contract terms
- All parties present or properly represented
- Funds transfer arrangements clear
- Keys/possession on signing
Post-Completion
Registration
- Lawyer will register purchase at Land Registry
- Timeline for registration confirmed
- Copy of registered deed to be provided
Tax Filings
- ITP/IVA filing handled (30-day deadline)
- Modelo 600 submitted
- Payment receipt obtained
Utility Transfers
- Electricity contract transferred
- Water contract transferred
- Gas (if applicable)
- Internet arrangements
Community Notification
- Community administrator notified of ownership change
- Bank details provided for fee collection
- Contact details registered
Timeline Reference
| Stage | What to Check | Who Does It |
|---|---|---|
| Before offer | Basic property status | You + agent |
| After offer accepted | Full due diligence | Lawyer |
| Before signing arras | All critical items cleared | Lawyer |
| At completion | Final verification | Lawyer at notary |
| After completion | Registration, transfers | Lawyer/Gestoría |
When to Walk Away
Serious issues that should stop the purchase:
- Illegal construction with no path to legalization
- Unpayable debts that exceed equity
- Title disputes or unclear ownership
- Seller won't provide standard documentation
- Major structural problems without price adjustment
Walking away at due diligence saves you from problems. That's what it's for.
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Frequently Asked Questions
Do I need a gestor for this process?
For most administrative procedures in Spain, a gestor simplifies the process significantly. They handle paperwork, book appointments, and know the practical requirements that websites often do not mention. Fees typically range from EUR 50-150 per procedure.
What documents do I need?
At minimum, you will need your NIE (or passport for initial procedures), proof of address (padron certificate or utility bill), and documentation specific to the procedure. Always bring originals and copies of everything.
How long does this process take?
Processing times vary by office and procedure. Simple administrative tasks take days to weeks. Residency, tax, and property matters can take weeks to months. Having all documentation correct from the start prevents delays.
Where can I get help in English?
English-speaking gestoria offices on the Costa del Sol handle most expat administrative needs. See our guide to English-speaking gestorias for recommendations. Many town halls in tourist areas also have some English-speaking staff.
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