Due Diligence of Property
When purchasing a property it is important to make sure that you know exactly what you are buying. Often there may be hidden costs, unpaid fees or taxes or unknown debts against the property. At Lusa Legal we want to make sure that all issues are properly researched and addressed prior to finalizing the purchase agreement to ensure that your investment is well protected.
What exactly is Due Diligence?
Due diligence is the process of investigating all aspects of your investment to ensure that every precaution has been taken to protect yourself from any unforeseen problem or issue that may be hidden at the time, or may arise in the future. At Lusa Legal we believe that the practice of due diligence real estate Spain is an important and very necessary step to ensure that the property you are considering purchasing is without risk.
What should be investigated prior to property purchase in Spain?
When purchasing a home the following due diligence property Barcelona should be looked into:
- Who has ownership of the home? Is the person who is attempting to sell the home the same person who has titleship of the home?
- Are there any liens or debts against the home that have not yet been paid? If so, how will these debts be cleared prior to purchasing the home?
- Is there currently anyone renting the home? If so, what is the tenant agreement and will the renter have moved out once ownership is transferred.
- Are there any unpaid fees or property taxes that are still owing and if so, will these be paid off prior to purchase?
- What taxes will you be required to pay in order to purchase the home?
- What will be the final total cost to you, in order to purchase the property and what will be the maintenance costs of upkeeping the property once you purchase it?
- What is the annual property tax amount on the property?
- What will the cost of house insurance be?
You should also obtain a copy of the following documents from the seller:
- Declaration that there are no leases or unpaid debts owing on the property.
- A receipt from the local ministry stating that there are no unpaid property taxes still owing.
- Documentation proving whose name is on title of the property.
What are the benefits of performing due diligence of real estate in Spain prior to finalizing the purchase?
There are a few main benefits of having a legal office perform due diligence property Spain:
- It offers the opportunity to learn as much as possible about the property prior to signing the final documents.
- It allows you to make sure that there will be no unexpected surprises in the future about the property you are purchasing.
- It gives peace of mind that the property you are purchasing is a sound financial investment.
- It allows for the opportunity to renegotiate the contract of sale or back out of the deal altogether if the deal appears too risky or if things are not what they initially seemed.
Although performing due diligence when purchasing a property is something that can be done without legal advice (by contacting the property registry (registro de propiedad) yourself) we believe that as much care as possible should be taken when it comes to dealing with your investments. A home or property is one of the greatest and most costly investments that a person can make, so ensuring that it is the best and most profitable investment possible is of the highest importance. The team at Lusa Legal is your due diligence real estate Barcelona specialists. We know just what to look for to minimize your risk so you can reap the rewards of your purchase. We are here to help and look forward to answering all of your questions. Please contact us today: +34 605 33 60 90.