Real Estate Due Diligence

Buying a property is a major investment — and it’s essential to fully understand what you’re purchasing before signing any agreements. Hidden fees, outstanding debts, or unresolved legal issues that could jeopardize your investment.
If you’re from another country, this step is even more helpful because the legal system in Spain may be very different from what you’re used to. A property lawyer in Spain can help guide you through these legal steps.
You should always make sure the seller truly owns the property. This can be done by looking at the Land Registry, which shows who owns the property and if there are debts or legal problems. Sometimes, a property looks great but has hidden issues like unpaid taxes or illegal changes to the building. Checking all this ahead of time helps you know exactly what you’re buying and if anything needs to be fixed before you go ahead.
At Serviciosdextranjería, we carry out thorough due diligence checks to ensure your property purchase in Madrid is safe, secure, and fully transparent.
What Is Property Due Diligence?
Due diligence is the process of thoroughly investigating a property before purchase to identify and mitigate any risks. This includes checking for outstanding debts, legal claims, hidden fees, tenancy issues, and verifying legal ownership. At Serviciosdextranjería, we consider due diligence a critical step in protecting your financial interests when entering the Spanish real estate market.
Key Areas to Investigate Before Buying Property in Spain
Here’s what our team reviews as part of the due diligence process:
Legal Ownership: Is the seller the legal titleholder? We verify all title documentation.
Debts & Liens: Are there any unpaid debts, mortgages, or legal claims on the property?
Existing Tenants: Is the property currently rented? If so, what are the terms, and will it be vacant upon transfer?
Outstanding Fees or Taxes: Are there unpaid property taxes, utility bills, or community fees?
Tax Responsibilities: What taxes are you liable to pay upon purchase?
Total Cost of Ownership: What is the true cost, including purchase price, taxes, insurance, and ongoing maintenance?
Annual Property Taxes: What will you owe each year?
Home Insurance: What’s the expected cost of insuring the property?
We also collect the following key documents from the seller:
A declaration of no outstanding leases or debts
A receipt from the local authority confirming no unpaid property taxes
Proof of title ownership
Why Property Due Diligence Matters
Conducting professional due diligence offers major advantages:
Ensures full transparency before committing to a purchase
Helps avoid hidden costs or legal complications
Provides peace of mind knowing your investment is secure
Offers leverage to renegotiate terms — or walk away — if issues are found
While you could investigate some of this yourself through the Registro de la Propiedad (Property Registry), having experienced legal professionals handle it ensures no detail is missed. At Serviciosdextranjería, we are experts in real estate due diligence in Madrid. We know exactly what to look for and how to protect your interests so that you can invest with confidence and clarity.
Ready to move forward with peace of mind?