Legal Due Diligence for Buying Property in Spain

Buying property in Spain without proper legal due diligence is like buying a car without checking under the bonnet. The exterior might look perfect, but underneath you could find illegal extensions, planning violations, unpaid community debts, or boundary disputes that will cost you tens of thousands of euros to resolve — if they can be resolved at all.

The Costa del Sol’s pre-2008 building boom left a legacy of planning irregularities that still affect properties today. Illegal builds, missing Licencias de Primera Ocupación, boundary encroachments, and undeclared extensions are more common than most buyers expect. Your lawyer is the last line of defence between you and a very expensive mistake.

Why Independent Legal Advice Matters

Your lawyer must be independent of the estate agent and the seller. This is not optional — it is essential. Some agents recommend “their” lawyer. That lawyer may be competent, but their relationship is with the agent who refers them regular business, not with you. An independent lawyer has one client: you. One interest: protecting your purchase.

The 9-Point Due Diligence Checklist

Here is what a thorough Spanish property lawyer checks before you commit:

1. Nota Simple (Land Registry Extract)

Confirms the registered owner, property boundaries, size, any mortgages or charges (embargos), and any third-party rights. This is the first document your lawyer requests.

2. Planning Status (PGOU Compliance)

Verifies the property complies with local planning regulations (Plan General de Ordenación Urbanistica). Checks for illegal extensions, non-permitted structures, and zoning restrictions. Critical in Benahavís and rural areas where planning enforcement has historically been inconsistent.

3. Community Debts

Requests a certificate from the community administrator confirming the property is up to date on all community fees. Outstanding debts transfer to the new owner. We have seen properties with €10,000+ in unpaid fees.

4. Boundary Verification

Compares the cadastral map with the actual property boundaries. Discrepancies between registered and actual size are surprisingly common on the Costa del Sol, particularly for villas on larger plots.

5. Licencia de Primera Ocupación (LFO)

The First Occupation Licence confirms the property was built in accordance with the approved plans. Missing LFOs are one of the most common issues on the coast. Without one, you may have difficulty connecting utilities or getting a mortgage.

6. Energy Performance Certificate (CEE)

Required by law for all property sales. Rates the property from A (most efficient) to G (least). Most older Costa del Sol properties rate E-G. New builds are typically A-B.

7. ITE (Building Inspection)

Buildings over 50 years old require a periodic technical inspection (Inspección Técnica de Edificios). Relevant for older apartment buildings in Marbella town centre and established urbanisations.

8. IBI and Tax Debts

Confirms all property taxes (IBI) and rubbish collection (basura) are paid. Unpaid IBI can result in a charge on the property.

9. Contract Review

Reviews the arras contract (deposit agreement) and the compraventa (purchase deed) to ensure your interests are protected. Checks penalty clauses, completion conditions, and what happens if either party withdraws.

The Purchase Process

• Reservation: €6,000-€10,000 to take the property off the market (1-2 weeks)
• Arras contract: 10% deposit, legally binding. If buyer withdraws, loses deposit. If seller withdraws, pays double. (2-4 weeks for due diligence)
• Due diligence period: lawyer completes all 9 checks above
• Compraventa: final deed signed at the notary. Balance paid. Keys handed over.

Common Legal Issues on the Costa del Sol

• Illegal extensions: enclosed terraces, extra bedrooms, pools built without permission. Common in older villas.
• Missing LFO: particularly for properties built during the 1990s-2000s boom. Can often be regularised but takes time and money.
• IBI arrears: unpaid council tax that transfers to the buyer.
• Ley de Costas: coastal law restrictions on beachfront properties within the maritime zone.
• Cadastral vs registry discrepancies: different sizes recorded in different systems.

Legal Costs

Independent lawyers typically charge 1-1.5% of the purchase price, with a minimum of €2,500-€3,000. This covers all due diligence checks, contract review, and notary representation. See our full buying costs breakdown.

How We Help

As your buyer advisor, we introduce vetted, independent property lawyers in Marbella who specialise in international purchases. We coordinate the due diligence timeline with the purchase schedule, flag any issues early, and ensure nothing falls through the cracks between lawyer, bank, and notary.

Frequently Asked Questions