Buying Resale Property in Spain: Essential Checks Before You Sign

Why Resale Properties Need Extra Scrutiny

Most foreign buyers in Spain purchase resale properties — existing homes rather than new builds. They're cheaper, available immediately, and located in established neighbourhoods. But they also come with risks that new-build properties don't: undisclosed debts, illegal extensions, missing permits, and legal complications that can cost you tens of thousands of euros after purchase.

Your lawyer should handle these checks. But you need to know what they're checking and why. If your lawyer isn't doing all of the following, find a better lawyer.

The Essential Checks: Your Resale Property Checklist

1. Nota Simple from the Land Registry (Registro de la Propiedad)

This is the single most important document. The nota simple is an extract from the Land Registry confirming:

• Who owns the property — verify the seller is actually the registered owner
• The property description — size, boundaries, and registered features
• Any charges or encumbrances — mortgages, liens, embargos, or legal claims
• Any annotations — pending court cases or administrative actions

Red flags: Multiple owners where only one is selling. An existing mortgage that exceeds the sale price. Embargo annotations from unpaid debts. A property description that doesn't match reality (different size, missing floors).

Cost: Around €10 online via registradores.org. Your lawyer should obtain this as step one — before you pay any deposit.

2. Community Debts: Derrama and Unpaid Fees

If the property is in a community of owners (comunidad de propietarios) — which includes most apartments and many urbanisations — the seller must provide a certificate from the community administrator confirming they are up to date with payments. This is required by law at the notary.

Check for:

• Unpaid monthly community fees — debts transfer to the new owner for the current and previous year
• Derrama (special assessment) — one-off charges for major works (new roof, lift repair, facade renovation). If a derrama has been voted but not yet invoiced, you could inherit it
• Planned future works — ask for the minutes of the last 2-3 community meetings to see if major expenses are coming

Key point: Under Spanish law, the buyer is jointly liable for community debts from the current year and the year before. A property with €5,000 in unpaid fees becomes your problem at completion.

3. Urban Planning Compliance (Licencia de Obra)

Verify that the property was built with proper planning permission and that any modifications have been licensed. Your lawyer should check with the town hall (ayuntamiento) for:

• The original building licence (licencia de obra mayor)
• Any subsequent reform licences (licencia de obra menor) for extensions, pools, or structural changes
• The property's urban classification — urban (urbano), rustic (rústico), or protected

Why it matters: An unlicensed extension might be tolerated for years, but it can't be included in a mortgage valuation, it may not be insurable, and the town hall can theoretically order its demolition — even decades later.

4. Illegal Extensions and Coastal Law (Ley de Costas)

Two of the biggest traps in Spanish resale property:

Illegal extensions: Enclosed terraces, converted garages, extra rooms built without permission. These are extremely common, especially in older properties and on the costas. An extension that isn't registered in the Land Registry doesn't legally exist — you can't mortgage it, insure it, or guarantee it won't be ordered demolished.

Ley de Costas (Coastal Law): Spain's coastal protection law establishes a public domain zone along the entire coastline. Properties within the maritime-terrestrial public domain zone (typically the first 100 metres from the shore, but it varies) face severe restrictions:

• No new construction or significant renovation
• Existing properties may have a concession that expires — check the expiry date
• Properties in the "protection zone" (next 100 metres) face building restrictions
• The 2013 reform extended some concessions to 75 years but didn't solve all issues

Action: If the property is near the coast, your lawyer must check the deslinde (coastal demarcation line) and confirm the property's position relative to it.

5. Energy Performance Certificate (Certificado de Eficiencia Energética)

The seller is legally required to provide an energy performance certificate before marketing the property. It rates the property from A (most efficient) to G (least efficient) and is valid for 10 years.

• Most resale properties in Spain rate E, F, or G — this is normal for older buildings
• A low rating isn't a deal-breaker, but it tells you about future heating/cooling costs
• Without a valid certificate, the sale cannot be completed at the notary

Cost: The seller pays, typically €100-200. If the seller doesn't have one, they must obtain it before the sale.

6. IBI Receipts (Impuesto sobre Bienes Inmuebles)

IBI is Spain's annual property tax, similar to council tax. Your lawyer should verify:

• All IBI payments are up to date — unpaid IBI creates a charge on the property that transfers to you
• The catastral value — the tax authority's assessed value, shown on the IBI receipt. This determines your annual tax and is also the basis for capital gains calculations if you sell later
• The catastral reference matches — compare the catastral reference on the IBI receipt with the Land Registry entry and the actual property

Tip: If the catastral value seems unusually low compared to the purchase price, it may mean the property hasn't been reassessed recently. This could change — and your IBI bill could jump significantly after a municipal revaluation.

7. Building Survey / Structural Inspection

This is not legally required in Spain but strongly recommended — especially for older properties, villas, or anything built before 2000.

A building survey (informe técnico or inspección técnica) by a qualified architect or surveyor checks:

• Structural integrity — cracks, subsidence, damp, roof condition
• Plumbing and electrical systems — old lead pipes, outdated wiring
• Damp and waterproofing — especially basements and flat roofs
• Pool condition (if applicable) — leaks, pump, filtration
• Compliance with current building standards

Cost: €300-600 for a standard survey. A small price compared to discovering structural problems after you've signed.

Note: For buildings over a certain age (varies by municipality, usually 30-50 years), an ITE (Inspección Técnica de Edificios) may be mandatory. Ask whether the building has passed its ITE.

8. Occupancy Certificate (Licencia de Primera Ocupación / Cédula de Habitabilidad)

This certificate confirms the property meets minimum habitability standards and matches the approved building plans. It's issued by the town hall.

• Required to connect utilities (water, electricity) in some municipalities
• Required to register a holiday rental licence
• If missing, it may indicate the property was built or modified without proper permissions
• Some older properties never had one — obtaining it retrospectively can be straightforward or very difficult depending on compliance

Key question: Does the property have a valid cédula de habitabilidad or licencia de primera ocupación? If not, can one be obtained? Your lawyer and a local architect can advise.

Summary Checklist

Golden rule: Never sign an arras contract (deposit agreement) until your lawyer has completed checks 1-6 at minimum. Checks 7 and 8 should be done before the escritura (title deed) at the notary. If the seller pressures you to skip checks or rush the timeline, that's a red flag — not a reason to comply.

Frequently Asked Questions

The Essential Checks: Your Resale Property Checklist?

1. Nota Simple from the Land Registry (Registro de la Propiedad)

This is the single most important document. The nota simple is an extract from the Land Registry confirming: Who owns the property — verify the seller is actually the registered owner The property description — size, boundaries, and registered features Any charges or encumbrances — mortgages, liens, embargos, or legal claims Any annotations — pending court cases or administrative actions

Red flags: Multiple owners where only one is selling. An existing mortgage that exceeds the sale price. Embargo annotations from unpaid debts. A property description that doesn't match reality (different size, missing floors).

Summary Checklist?

CheckWho Provides ItWhy It Matters Nota simpleLand RegistryConfirms ownership, debts, charges Community debt certificateCommunity administratorUnpaid fees transfer to buyer Urban planning checkTown hall (ayuntamiento)Confirms legal construction Coastal law checkCostas authority / lawyerRestrictions near the coast Energy certificateSeller (certified technician)Legally required for sale IBI receiptsSeller / town hallConfirms no tax debts Building surveyIndependent architect/surveyorReveals structural issues Occupancy certificateTown hallConfirms habitability

Golden rule: Never sign an arras contract (deposit agreement) until your lawyer has completed checks 1-6 at minimum. Checks 7 and 8 should be done before the escritura (title deed) at the notary. If the seller pressures you to skip checks or rush the timeline, that's a red flag — not a reason to comply.