Introduction
Buying property in Lanzarote can be an excellent investment and a wonderful lifestyle choice. However, the legal framework surrounding property ownership in Spain differs significantly from that of many other countries, particularly for foreign buyers. Carrying out proper legal due diligence before committing to a purchase is essential.
Planning Compliance: A Common Issue in Lanzarote
One of the key issues in Lanzarote is that many properties were built outside planning regulations or do not fully comply with current planning law. This does not always prevent a sale, but it can have serious legal and financial consequences if not identified in advance.
What Legal Due Diligence Includes
Legal due diligence involves verifying the true legal status of the property. This includes:
1. Reviewing Official Registries
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The Land Registry
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The Cadastre
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The property’s planning situation
This ensures that what is registered corresponds with the physical reality of the property.
2. Checking Modifications and Structures
Any extensions, alterations or additional buildings must be carefully reviewed.
Ensuring the Property Is Free of Debts
It is also crucial to confirm that the property is free from debts and charges, such as:
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Outstanding mortgages
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Embargoes
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Community fees
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Unpaid local taxes
These liabilities may, in some cases, be passed on to the new owner if not properly addressed before completion.
Reservation Deposits: A Critical Moment
Foreign buyers are often asked to pay a reservation deposit at an early stage. Before doing so, independent legal advice is strongly recommended to ensure that the investment is legally sound and that the purchase contract fully protects the buyer’s interests.
Why Proper Legal Due Diligence Matters
Proper legal due diligence provides peace of mind, helps avoid unexpected problems after completion, and ensures that your investment in Lanzarote is secure. Engaging an experienced legal professional from the outset is the best way to protect your interests and enjoy your property with confidence.
