Due Diligence

Due Diligence

It has become imperative that all overseas property agents carry out their own Due Diligence, before even contemplating the actual marketing and selling of the properties.

This is especially true in the case of new builds and urbanisations. 

What does Due Diligence actually mean and what do Mercers do?

Due Diligence means to carry out various investigations into (in this case) a property or new development. This is designed to look into every aspect of the property and to make sure that what we are selling is in fact what you will buy.

We need to satisfy ourselves that everything is legal and above board. How do we do this?

We use a firm of highly specialised lawyers to look into:

1. Ownership of the project/land and or property
2. The sellers are in fact the owners and able to sell
3. All planning permissions have been granted
4. All planning permissions have been adhered to
5. No outstanding debts on the property
6. No planning issues outstanding
7. Bank financing is available 
8. No unusual conditions attached to the sale
9. Contracts are in English & Spanish
10. Developers insurance is in place (in the case of new build)
11. 10 year structural insurance in place

Once we are satisfied that all of the above have been “ticked” we then look into the project to make sure that we are happy with the overall concept and securities put in place and only then do we then start to market the properties.

Of course as an experienced agent, carrying out this level of Due Diligence, should be the norm. Unfortunately it is not and that is why we all read about horror stories in the press.

We recommend that you use an experienced lawyer to carry out the conveyance procedure and to help with other aspects of the purchase.

Who you choose is entirely up to you, however we do recommend you use a Spanish, bi-lingual lawyer, who knows the procedures and is experienced in them. 

At Mercers we work with a number of very good independent Spanish lawyers, we are happy to recommend them to you.

With Mercers Due Diligence checks and our Mercers Guarantee, you can rest assured that your purchase in Spain will be as it should be – enjoyable, stress free and hopefully profitable.

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