A due diligence on the Costa del Sol property is a process of documental verification to assure the buyer that the purchase is safe and it normally begins after the reservation contract has been signed by buyers and vendors. The due diligence is normally carried by the buyer´s solicitor and varies slightly if the buyer is purchasing a resale home (second hand home) or a new build property (or brand new home).
On resale properties the due diligence includes:
- Verification of the legal identity of the owner of the property the client is purchasing. - Confirmation that the property is legally registered at the Spanish Land Registry. - Corroboration that the property is sold free from charges (such as: mortgages, liens and encumbrances, etc.). - Verification that the property has been granted municipal building permit and habitation license and respect the urban planning regulations. - Preparation of any type of purchase contract to execute the purchase (private purchase contract, public deeds, etc.).
On new build properties the due diligence includes:
It includes all of the above, plus:
- Verification that the building or quality specifications are made available and are included in the annex of the purchase agreement. - Confirmation that the Bank Guarantee or Insurance Policy are in place for all the amounts paid to the developer during the construction period. - Corroboration and verification of the of the mandatory 10 year insurance guarantee (Seguro Decenal) that will provide coverage for any structural defects on the property.