Are you on the brink of sealing the deal on your dream property in Spain? Congratulations! Before you get ready to sign on the dotted line, it’s crucial to conduct a thorough due diligence check to ensure a smooth and stress-free real estate transaction. To help you navigate this crucial phase, we’ve compiled the ultimate due diligence checklist that covers all the bases.

1. Financial Health:

a. Liabilities:

  • Debts and Mortgages: Verify if the property has any existing debts or mortgages. A clean slate ensures a trouble-free transfer of ownership.
  • Pending Payments to the Owners Community: Check for outstanding payments to the community of owners, ensuring you won’t inherit any financial burdens.

b. Building Expenses:

  • Upcoming Charges for Works: Inquire about any planned or ongoing renovations in the building. This ensures you’re aware of potential future expenses.

2. Legal Aspects:

a. Urbanism Plans:

  • Urban Development Plans: Confirm that the property adheres to local urbanism plans to avoid any legal complications in the future.

b. Municipal Taxes:

  • Impuesto sobre Bienes Inmuebles (IBI): Verify the property’s municipal tax status to avoid any surprises in terms of outstanding payments.

3. Documentation:

a. Cédula de Habitabilidad:

  • Habitability Certificate: Ensure the property has a valid “cédula de habitabilidad,” indicating it meets the necessary living conditions.

b. Energy Certificates:

  • Energy Efficiency Certificate: Check for an up-to-date energy performance certificate, providing insight into the property’s energy efficiency.

4. Building Inspection:

a. Inspección Técnica de Edificios (ITE):

  • Building Inspection Report: For older buildings, request and review the ITE report to identify any structural issues or necessary repairs.

5. Additional Considerations:

  • Notary and Property Registry: Confirm that the property is duly registered and the title deeds are clear.
  • Utilities and Services: Ensure all utilities and services are in working order, and there are no outstanding bills.

By diligently reviewing these aspects, you’ll be equipped to make an informed decision and safeguard your investment. Don’t hesitate to seek professional advice from a local real estate expert or lawyer to navigate the intricacies of the Spanish real estate market effectively.

Remember, a thorough due diligence process is the key to turning your dream property into a lasting reality. Happy house hunting!

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