Foreign entrepreneurs who want to buy a property in Spain for their own use or for investment purposes should perform a real estate due diligence procedure in order to find out if it is something wrong with the property.
Such a procedure is strongly recommended before signing the selling-buying contract, especially if the property has a high selling price and the investor doesn’t know much about the real estate in Spain. A real estate agent is not enough if you want to be sure that the property you buy won’t offer you future unpleasant surprises, such as hidden debts, mortgages, many owners, no authorizations etc.
How a lawyer in Spain can help you
When you need a real estate due diligence procedure performed by a neutral specialist, you may contact our law firm in Spain. Our lawyers in Spain know very well the local real estate market, the specific regulations, and problems that may appear when you buy a building or a plot.
Our Spanish attorneys speak English, so it will be easy for you to understand them and they will explain you the subtleties of the Spanish real estate market. It is not advisable to choose the lawyers who represent the interests of a real estate firm but to find a neutral lawyer who will offer you the advantages and disadvantages of a deal and let you decide what it is good for you. Our lawyers can also represent foreigners in any aspect of the commercial law – opening a company, obtaining business permits, applying for various authorizations and obtain the EORI in Spain.
The following video offers a short presentation on the real estate due diligence in Spain:
It is not recommended to buy a property based solely on appearance and not enough information. The real estate due diligence will offer you all the details you need for concluding a profitable transaction. Firstly you have to decide the goal of buying a building or a plot in Spain – for investment or for your own use as a holiday home or a special residence.
The real estate market in Spain has offered good opportunities for investments in the last years when the prices for buildings and plots have decreased because of the economic crisis. Even if a house is offered for selling at a very good price, it doesn’t mean it is a good business because later you may discover that it has not a good position, it is difficult to maintain, it doesn’t have all the utilities you need or the surroundings are ill-famed.
The real estate due diligence checklist
The Spanish lawyer you choose will commence a real estate due diligence process and he will check all the important elements before concluding the deal. A preliminary verification is very important and, if possible, you should take the time to visit the property yourself. If you cannot be present in Spain during the preliminary negotiations with the seller, one of our lawyers can represent your best interests. The attorney in Spain will verify:
– if the property is owned by the seller,
– if there are any other leases on the property,
– if it is free of charges, such as mortgages or debts,
– the city hall’s plans for urban development/ zoning and land matters,
– tax payments and general financial situation,
– obligations, etc.
Commercial real estate has different characteristics from residential properties, this is why the due diligence process for commercial real estate will be more complex. A complete verification can also include:
– information about the physical condition of the property,
– any environmental issues and necessary discharge permits,
– parking space,
– adequate access.
Moreover, the due diligence process can provide information about the seller who can be either a natural person or a Spanish company. The goal of the process is to compare the information received by the buyer with the actual data about the property to be purchased.
In order to find out more about a real estate due diligence, you may contact our law firm in Spain that may perform a wide range of legal services for investors in this country.
If you want to purchase a property/verify a property located in the city of Barcelona, we invite you to call our lawyers in Barcelona. You can receive professional legal assistance tailored to your needs.
In general, due diligence is a necessary procedure for properties which have had a previous owner for a longer period of time, so if you want to acquire a property from an individual, it is best to verify its condition.
We provide this service in other Spanish cities/regions as well. Thus, if you are interested in due diligence services in the city of Madrid, please do not hesitate to contact our lawyers in Madrid.
Properties in Madrid can be rather costly, an apartment of approximately 90 square meters can cost EUR 440,000, so it is highly recommended to verify the conditions in which it is sold.