Real state of Real Estate – The importance of the due diligence

Can a property be purchased if it is occupied by persons other than the owner?

What about a property for which a third party’s right of usufruct has been recognised?

What about a rented property?

And what if the property is in joint ownership? or if one of the parties of the joint property is a minor?

The answer is YES. In Spain you can buy a property whatever state it is in, as long as there is a title, a contract of sale, and a mode, the actual delivery of the property (art. 609 Spanish Civil Code.).

This “delivery” can be carried out by handing over the keys or by the execution of a public deed, i.e. signing at a notary’s office.

However, these are circumstances that reduce the purchase price, as they do not allow the property to be disposed of immediately.

If you are going to buy a property in any of these circumstances, it would be ideal to carry out due diligence beforehand to find out how difficult or easy it is going to be to obtain actual possession of the property. To do this, it would be best for a specialist lawyer to obtain as much documentation as possible and be able to inform you of the REAL STATE of the the Real ESTATE, so that the buyer can make an informed decision.

If the property is occupied, it is necessary to find out whether it is a civil matter (a tenant who no longer pays, a mortgagor, a precarist, etc.) or a criminal matter (usurper, squatter, etc.).

It would also be necessary to know whether judicial proceedings are underway and in what phase it is.

If the property is in joint-ownership, you could only acquire the seller’s share of the property. If I own 25% of a property, as a result of the distribution of an inheritance, for example, I can only sell my 25%.

In this case, obtaining information on who the other co-owners are and whether they would intend to sell their share would be essential. If there is no agreement, a judicial procedure for the extinction of the condominium will have to be started.

Also, if one of the owners is a minor, you should be informed that it would be necessary to obtain a judicial authorisation to sell.

Do you want to know more? Do not hesitate to contact us.