Property due diligence in Costa Blanca is the process of verifying title, planning permissions, and licenses before purchase. Foreign buyers depend on this process to confirm that ownership is valid, the property is legal, and the use complies with regional and national laws. Skipping due diligence exposes buyers to debts, demolition orders, or rental restrictions. This guide explains the checks every buyer should complete in Alicante province.
Title Verification and Land Registry in Costa Blanca
The first step in property due diligence in Costa Blanca is verifying the title through the Land Registry. Every property must be cross-checked through the Registro de la Propiedad, the official Land Registry. The Nota Simple provides a snapshot of ownership, outstanding mortgages, embargoes, and other encumbrances. Without reviewing this document, a buyer cannot know if the seller has full rights to transfer the property.
The Escritura Pública, the deed signed before a notary, confirms legal ownership. Buyers must compare the Escritura against the Nota Simple to ensure accuracy. The Catastro, Spain’s cadastral register, records property size, boundaries, and valuation. Discrepancies between Escritura and Catastro often reveal extensions or alterations not properly registered. Full definitions appear in our glossary of Spanish real estate terms.
Costa Blanca Planning Permissions and Urban Classification
Planning checks in Costa Blanca confirm whether a property has the right permissions and falls within the correct land classification. A Licencia de Obra confirms that construction or renovation work was authorised. A Licencia de Primera Ocupación (LPO) confirms that the local council approved the property for habitation. In some cases, buyers encounter properties without an LPO, which can complicate mortgage approvals or rental licensing.
Urban classification determines what can legally be built or used. A Finca Urbana sits within urban land and usually has infrastructure and services. A Finca Rústica sits within rural land and faces restrictions on development. Buyers who purchase rural homes without proper planning permission risk fines or demolition orders. Related costs are detailed in our costs of buying property in Costa Blanca article.
Tourist Licenses and Rental Compliance in Costa Blanca
Holiday rental potential in Costa Blanca depends on securing the correct tourist licenses and meeting legal requirements. In the Valencian Community, short-term holiday lets require a Vivienda Turística (VT) license. Without it, advertising on platforms such as Airbnb or Booking.com is illegal.
The Horizontal Property Law, amended in 2025, now requires community approval for apartments in shared buildings. At least sixty percent of owners must vote in favour of tourist rentals. Buyers must review community rules before purchase. From July 2025, Spain requires all short-term rentals to register with the NRUA, which assigns a unique rental ID for advertising. For a complete breakdown, see our tourist rental laws in Spain 2025 guide.
Community Statutes and Shared Developments
Shared developments in Costa Blanca add another layer to due diligence because community rules can limit how a property is used. Apartments and townhouses within urbanisations or shared buildings are governed by the Comunidad de Propietarios. Rules may restrict tourist rentals, pets, renovations, or business activities.
Community fees cover maintenance of pools, lifts, and gardens. Buyers must request Actas de Comunidad, the minutes of recent meetings, to identify approved works or pending debts. Sellers remain liable for debts up to the current and previous year, so buyers must ensure accounts are clear before purchase. Related costs appear in our Spanish property taxes explained for foreign buyers article.
Utility Connections and Certificates
Utility contracts and energy certificates are essential checks in Costa Blanca property transactions. Buyers must confirm supply contracts for water, electricity, and gas. Unpaid utility bills can delay service connection after purchase.
A Certificado Energético, or energy performance certificate, is mandatory for all sales and rentals. Some municipalities also require a Cédula de Habitabilidad, a certificate of habitability. Ensuring these certificates exist avoids delays at notary signing. Utility and certification checks form part of the step-by-step property buying process in Spain.
Common Red Flags to Avoid in Costa Blanca
Several warning signs in Costa Blanca properties highlight why due diligence is non-negotiable:
- Properties with embargoes or outstanding mortgages hidden in the Land Registry.
- Rural homes built without planning permission, subject to fines or demolition.
- Holiday rentals advertised without a VT license or NRUA registration.
- Differences between Escritura and Catastro, revealing unregistered extensions.
Investors must be alert to these issues because they directly affect yield and resale value. More analysis appears in our ROI on Costa Blanca holiday rentals.
Professional Support for Due Diligence
Specialist support ensures due diligence in Costa Blanca is thorough, accurate, and compliant with Spanish law. Lawyers check contracts, debts, and urban status. Notaries certify the deed of sale and ensure legality at signing. Gestorías handle tax payments and registry filings. API agents, such as Villas al Sol (API nº 1197, RAICV 0122), guide buyers through compliance, documentation, and negotiation. Professional checks prevent errors that private buyers may overlook. Villas al Sol provides international property buyers with a clear due diligence process supported by licensed API representation.
