Due diligence is the single most important legal protection in a Spanish property purchase. Here is exactly what Mojo’s Legal Department verifies before you commit a single euro beyond the reservation.
Why does due diligence matter more in Spain?
Two Spanish particularities surprise international buyers:
- Certain property-related debts can carry over
Community fees, some local taxes such as IBI (council tax) and even the previous owner’s plusvalía may affect the property or the purchaser if not properly addressed before completion.
- The notary does not protect you
The notary certifies the transaction; they do not investigate planning status, hidden charges, or whether the price and contract terms are fair.
That is why our in-house lawyers conduct complete due diligence on every Mojo transaction — leaving no stone unturned.
The due diligence checklist
| Area | What we verify |
| Title (Nota Simple) | The seller owns the property; boundaries and description match reality |
| Charges & debts | Mortgages, embargoes, community fee arrears, IBI and utility debts |
| Planning & licences | First Occupation Licence (LPO), building legality, no urbanistic infractions |
| Community of owners | Statutes, debts certificate, planned extraordinary levies, rental restrictions |
| Tax status | IBI receipts, cadastral data, valor de referencia vs purchase price |
| Contracts | Reservation and arras terms, penalties, included items, completion deadline |
For new builds and off-plan purchases, we additionally verify the developer’s building licence, bank guarantees for stage payments (Law 38/1999), the 10-year structural insurance, and the final occupation licence before completion.
What is the valor de referencia — and why can it cost you money?
Since 2022, transfer tax in Spain is calculated on the higher of the purchase price or the valor de referencia — an official reference value set by the Cadastre for every property.
If you buy at 950.000 € but the valor de referencia is 1.100.000 €, the 7% ITP in Andalucía is due on 1.100.000 € — an extra 10.500 € in tax that many buyers discover only after completion (in the Balearic Islands the same trap applies, at the higher Mallorca ITP rates). Mojo’s Legal Department checks the reference value before you sign anything, so the real tax cost is part of your decision, not a surprise. You can verify any property’s reference value through the official Cadastre — or simply ask us.
What happens if due diligence finds a problem?
Most findings are resolvable: debts are settled from the seller’s proceeds at the notary, missing certificates are obtained, and contract terms are corrected. The point of due diligence is not to kill deals — it is to fix problems while you still have negotiating power, or to walk away with your deposit intact when something cannot be fixed.
A properly drafted reservation contract may provide for the return of the deposit if material legal issues are identified during due diligence. This is standard practice in every Mojo transaction.
How do we prevent our findings?
You don’t simply get a verbal “all clear”. Mojo’s Legal Department prepares a full written due-diligence report on the property and hands it to you to review before you commit to the purchase. You make the decision with the complete legal picture in front of you — title, charges, licences, community status, tax position and any red flags — set out in plain language.
Can due diligence guarantee there are no surprises?
Honestly, no — and we would rather tell you that up front. Due diligence dramatically reduces risk, but not everything in Spain is on the public record. Some issues — undocumented building work by a previous owner, informal boundary arrangements, latent defects, or matters simply never registered — may not surface from the official sources, however thorough the search. Borderline cases and differences of interpretation also exist.
A buyer therefore always carries some residual risk, and we flag anything uncertain rather than imply you are 100% covered. The seller is, of course, contractually liable and has given undertakings in the contract.
But in practice, pursuing a claim against a seller — particularly one who no longer lives in Spain — can be slow and costly, and those costs have to be weighed against the size of the claim. That reality is exactly why rigorous checks before you sign matter far more than remedies afterwards, and why we put the written report in your hands before completion.
What about rural properties and older villas?
Properties outside urban plans (suelo rústico) and older villas carry specific risks: buildings without licences, AFO regularisation needs, boundary disputes, or wells and septic systems without permits. These do not automatically make a purchase impossible — but they change the price, the financing options, and the paperwork. Extra caution and senior legal review are non-negotiable here.
Related Guides
- What Legal Steps Are Involved When Buying Property in Spain?
- How Much Does It Really Cost to Buy Property in Spain?
- Legal Department