Why due diligence is essential when investing

Avoid costly mistakes when buying property in Valencia. Learn why due diligence is key to safe, smart real estate investment in Spain.

Why due diligence is essential when investing

🕵️ Buying without proper due diligence is betting blind, and the consequences can be brutal.
At weVLC, every product we offer has already passed a complete legal, technical, and financial audit before reaching you. We secure each opportunity off-market, only after confirming it is solid. You may ask — why go this far to buy property in Valencia? Because in Spain, property data is often unreliable and the sector lacks professionalism. This can lead to serious issues: blocked transactions, renovation delays, or projects that cannot be executed as planned. And ultimately, to losing a lot of money and time.

What’s important to take into account: 

When we assess a property, we do not just look at its facade or location. We launch a full due diligence project: an in-depth audit that validates, confirms, and protects every investment. 🔍

  1. Before signing any contract, we conduct a detailed legal and financial analysis. We request:
  • The "nota simple" from the Land Registry 📄 to validate the property ownership data –> is the “seller” actually the rightful owner? 
  • Review the latest community meeting records 🏢 to ensure there are no unexpected assessments, internal disputes, or very complicated building association communities.
  • Verify the property meets all required habitability standards 🏠
  • Confirm no hidden liabilities and carefully evaluate recurring costs such as IBI (property tax) and community fees. 

A quick tip 💡:  Always rely on a trusted notary.  And more importantly, in the deposit contract (arras) specify that the buyer chooses the notary, as the law states. This gives you control at a key moment and prevents last-minute surprises. ✍️

Attention if you’re buying to renovate: don’t forget to assess a construction due diligence, understanding if your project is doable, or if there are any risks from the current structure. 

  1. Next, we review the “arras” agreement line by line:
    Every detail — location, cadastral reference, owner's name — must be exact.
    We also ensure the deposit is "penitential": if the seller fails to comply, we receive double the deposit; if we back out, we forfeit the deposit. A fair and transparent protection. 🔒

  2. By the time we reach the notary stage, everything is ready:
    Documents reviewed, payments agreed, updated certificates. Everything is under control. ✅

And right after closing the purchase, we contract home insurance 🛡️Protecting the property from day one is an essential detail, not only out of responsibility but also to ensure that any incident is covered from the first moment.

📈 At weVLC, due diligence is not a formality. It is how we invest intelligently.
Every real estate investment in Valencia is a project of analysis, rigor, and protection.
Every step is one more layer of security for our investors. 🤝

Looking to buy property in Valencia or explore opportunities in real estate Valencia with strategy and security? Write to us. 🚀

The weVLC team

The weVLC team

weVLC

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