Gecko Towers
From our work in the property market it is clear that for many would be purchasers fear of the misunderstood or the unknown is very real. In some cases it paralyses attempts to buy a property and thus frustrates your opportunity to fully enjoy the advantages of a life in the Spanish sun.
Part of our role at MarbellaPropertyLawyers is to demystify and provide clear, buyer-friendly resources. This is not intended to be a “handbook” for you to use in isolation. It is designed to provide you with a list of prompts that should be dealt with by your trusted professional advisors.
This analysis of Due Diligence process intended to be practical, chronological, and focused on protecting your interests — especially against the common local pitfalls. The grandiose term “Due Diligence” simply means detailed research.
The following is a step-by-step Due Diligence guide – from Offer to Completion
Before Making an Offer
Your objective: to avoid wasting your time on properties with obvious red flags.
Quick checks (with or without your lawyer)
• Is the property type and location compatible with your intended use (e.g., short-term rentals)?
• Ask the agent for a Nota Simple, community fee amount, IBI amount, age of the building, and whether there are any “irregularities”.
• Check if the urbanisation has tourism restrictions (increasingly common).
Tip: Verbal assurances are less helpful – ask for documents.
After the Offer Is Accepted (but before paying a reservation fee)
Your lawyer should begin light pre-reservation checks.
Your lawyer will review:
• Identity of the seller (owner or power of attorney holder?)
• Property boundaries: Catastro v Property Register alignment
• Basic planning status: Is it urban, rural, or in a “fuera de ordenación” scenario? (Basically, the property (or part of it) is outside of the current urban planning)
• Debts: Unpaid IBI, utilities, community fees, charges, embargoes
Goal: confirm the property is legitimate enough to proceed to reservation.
Reservation Contract
Your lawyers should:
Protect you by ensuring:
• The reservation is refundable if legal issues are later discovered
• Clear deadlines
• The property is taken off the market
Common risk: Estate agents often push for signing reservation papers before a lawyer has looked at anything.
Full Legal Due Diligence (the heart of the process)
Once the reservation contract is signed and the property is off-market, your lawyer conducts detailed checks. This is where an independent local and experienced lawyer’s (Abogado) value becomes obvious.
Urbanistic & Planning Compliance
• Is there a valid Licencia de Primera Ocupación (LPO) (First Occupancy License)
• Are all structures legally built and registered?
• Are there unlicensed pools, terraces, extensions, basement conversions?
• Is the property affected by the PGOU (local planning plan) uncertainties?
Why this matters:
Illegal works are very common in Marbella, Estepona, Mijas, Benahavís, etc.
Registry & Title Checks
• Title chain
• Mortgages, charges, embargoes
• Rights of way, easements
• Whether any third-party claims exist
Community & Building Checks
• Community statutes & rules (including tourist rental prohibitions)
• Pending community works or special assessments
• Whether the property is up-to-date with community fees
Taxes & Debts
• IBI (local property tax)
• Basura (rubbish tax)
• Supply contracts: water, electricity, gas
• Outstanding supplier debts that can follow the property
Use and Rental Legality
If rental income is important, your lawyer must confirm:
• Tourist licence eligibility
• Whether the community prohibits Short Term Rentals
• Noise, nuisance, and zoning limits
Physical Inspection Coordination
Your lawyer should not replace physical inspections:
• Structural survey – by qualified professionals.
• Pool and plumbing checks
• Electrical and drainage inspection
• Humidity, damp, or infestation inspection (common in older coastal homes)
Private Purchase Contract (PPC / Arras)
This is the most critical contract in the Spanish buying process.
Your lawyer should seek to negotiate:
A penalty clause that favours you
Standard Arras contracts favour the seller. A buyer-focused lawyer balances the penalties.
Deadlines linked to the seller’s obligations
E.g., “Completion only after LPO is provided”, “Seller must register extension before completion”.
Clear list of what’s included
Furniture, parking, storeroom, fixtures, AC units, appliances.
Retentions
If the seller is non-resident, a retention (usually 3% of the agreed purchase price) is legally required. Sometimes extra retention protects you against unpaid community fees, taxes or similar.
Pre-Completion Phase
Your lawyer should:
• Confirm all previously identified issues are resolved
• Draft the deed with the notary
• Prepare (or help you obtain) your NIE number
• Assist you in opening your Spanish bank account (or arrange alternative compliance route)
• Ensure transfer of utilities is prepared
• Verify tax calculations: AJD (stamp duty), ITP, IVA (for new builds) notary costs, registry costs
Completion at the Notary
Your lawyer attends – with you or under a Power of Attorney and ensures:
• Seller signs clean title transfer
• Funds are transferred correctly
• Keys handed over
• Any retentions are properly withheld
• Seller’s mortgage is cancelled or funds allocated for cancellation
Post-Completion (often overlooked — but essential)
After signing, your lawyer should:
Register the property in your name at the Land Registry
Change utilities
Handle municipal tax notifications
Ensure the seller’s old debts are not passed to you
Arrange for non-resident tax representation if needed
Advise on insurance, alarm registration, and tourist licence application
Common Costa del Sol Pitfalls This Process Specifically Avoids
• Buying a property with illegal extensions
• Buying without knowing that short-term rentals are forbidden
• Missing urban planning liabilities
• Underestimating community work assessments
• Purchasing “fuera de ordenación” without understanding the consequences
• Being pushed into a rushed reservation designed to lock you in
• Overpaying due to weak leverage or poor contract terms
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Should you be interested in discussing the process involved in buying a property on the Costa del Sol, we would be delighted to assist you. Our experience-qualified and best of breed MarbellaPropertyLawyers Associates Network (M-Plan) comprises professionals focused on the western Costa del Sol (Malaga to Tarifa) property market. Their services include property search, mortgages, legal and tax services, visas, surveying, insurance and currency brokerage.
Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law. Nothing contained in this article should be seen or taken as legal, tax or financial advice and cannot be relied upon as such. Neither the writer nor the publisher accepts any responsibility for liabilities arising as a result of reliance upon the information given. All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.
My details: Mark FR Wilkins, during usual business hours on +34 600 343 917 or e-mail me at mark@therightsgroup.com
© Mark FR Wilkins 2026. All rights reserved.