Property due diligence in Spain, what to check before signing

Terms used

• Nota simple — The nota simple is a Land Registry extract showing a property's owner, mortgages, embargoes and other charges.
• Embargoes — Embargoes are court-ordered freezes on a property, usually because of an unpaid debt, that can pass to the buyer.
• Escritura — The escritura is the notarised title deed that records who owns a property.
• Catastro — The Catastro is Spain's property register for tax purposes, listing each property's reference, area and use.
• Gestor — A gestor is a licensed administrative agent who handles filings and tax payments for you.
• IBI — The IBI is the yearly local property tax paid by the owner.
• Plusvalía — The plusvalía is a local tax on the increase in the land's value, due when a property is sold.
• Licencia de primera ocupación — The licencia de primera ocupación is the town hall licence confirming a new or renovated home may be lived in.

Key rules

• Separate checks: Registry, Catastro, tax, community, planning and occupancy are each checked separately, so one clean document does not cover the rest.
• Lawyer: Your lawyer performs most checks; the notary only checks identity, capacity and legality at signing.
• Debts: Any mortgage or embargo must be cleared at completion.
• Local rules: Required documents differ by region and municipality.

The short version

No single document tells you a home is safe to buy. You run separate checks, each against a different source. Your lawyer does most of them. The notary does a few at signing. You do some yourself, such as visiting the property. Do the checks before you sign anything that commits you.

Who does what

Land Registry. Get a nota simple. It shows the owner, mortgages, embargoes and other charges on the property. Your lawyer or you can request it, and sometimes the notary does.

Seller and title. Your lawyer checks who the seller is, whether they can legally sell, and how they came to own the home. This covers the escritura, any inheritance, co-owners and marital status. The notary checks identity and capacity again at signing.

Catastro. The Catastro record gives the cadastral reference, area and use. Your lawyer or a gestor compares it with the registry entry. A mismatch in area or use is a warning sign.

Mortgages and debts. If the seller has a mortgage or an embargo, it must be cleared at completion. Your lawyer, the notary and the bank arrange this together.

Taxes. Ask for the latest IBI receipt and the status of the plusvalía. If the seller is a non-resident, their tax withholding also matters. Your lawyer or a gestor handles this, with the town hall.

Community of owners. For a flat, the administrator issues a certificate of no debt. Your lawyer then reviews it with the community statutes, the minutes of meetings and any special levies still to be paid.

Licences and planning. Check the licencia de primera ocupación or an equivalent, and the cédula de habitabilidad where it applies. Check that any extension is legal. A certificado urbanístico from the town hall helps with this. Your lawyer or an architect does this check.

Occupancy. Find out whether anyone lives there: tenants, squatters, or people with a right to stay. Your lawyer checks the legal position. You confirm it by visiting the property.

Other documents. The seller must give you an energy performance certificate. Where required, ask for the building inspection report. Ask for recent utility bills. For a new build, your lawyer checks the 10-year insurance and the bank guarantee on your deposits.

What the notary does not do

The notary checks identity, capacity and legality at signing, and reports any charges. The notary does not investigate whether the property is a good purchase. The gestor files paperwork and pays taxes after signing, not before.

Rules differ by place

Required documents differ by region and by town. Ask your lawyer which ones apply where you are buying.

The documents list and the checklist below give the detail for each check.

Documents you need

Documents to obtain before you sign

• Nota simple from the Land Registry, showing the owner, mortgages, embargoes and other charges. Your lawyer can request it, or you can.

• The seller's title deed (escritura) and any inheritance papers, to confirm who owns the home and how it was passed on. Your lawyer reviews them.

• Catastro record with the cadastral reference, area and use, to compare with the registry entry. Your lawyer or a gestor (a person who handles paperwork and filings) gets it.

• Latest IBI receipt (the yearly property tax) and proof of the plusvalía municipal status (a local tax on the land's rise in value). The town hall issues them. If the seller is a non-resident, also the seller's tax withholding details.

• Community of owners certificate of no debt, issued by the community administrator. For a flat, also ask for the statutes, recent meeting minutes and any pending special levies. Your lawyer reviews them.

• Licencia de primera ocupación (first-occupation licence) or an equivalent, and a cédula de habitabilidad (habitability certificate) where your region requires it. Your lawyer or an architect checks them.

• Urban-planning certificate (certificado urbanístico) from the town hall, which also helps confirm that any extensions comply. Your lawyer or an architect reviews it.

• Energy performance certificate, which the seller must give you.

• Building inspection report (ITE or IEE) where the building needs one, plus recent utility bills.

• For a new build: the 10-year insurance policy and the bank guarantee covering your deposit. Your lawyer checks both.

Legal checks to tick off before you sign

• Get a recent nota simple from the Land Registry and check the owner, mortgages, embargoes and other charges (you or your lawyer can ask for it).

• Check the seller's identity, capacity and title chain, including inheritance, co-owners and marital status (your lawyer, then the notary at signing).

• Match the Catastro record (cadastral reference, area, use) with the registry entry (your lawyer or a gestor, an agent who handles filings).

• Ask the seller for the community debt certificate from the administrador de fincas, signed off by the community president, and read the statutes, minutes and any pending special levies.

• Ask the town hall's urban planning department for a certificado urbanístico, and request to see the licence file to confirm the licences and that the plan allows the use.

• Check the licencia de primera ocupación or cédula de habitabilidad where required, and that any extension is covered by a licence (your lawyer or an architect).

• Visit the property to check who lives there, and ask your lawyer to confirm there are no tenants with a right to stay or squatters.

• Get the energy certificate from the seller.

• Ask for the building inspection report (ITE or IEE) where one is required, plus recent utility bills and the plans.

• For a new build, ask the developer for the libro del edificio, the 10-year structural insurance, the building licence, the certificado final de obra and the licencia de primera ocupación.

• For a new build, confirm that a bank guarantee or insurance covers every deposit you pay before completion.

• Ask your lawyer to confirm that the new-build declaración de obra nueva is registered in the deed.