Essential Due Diligence for Overseas Buyers

Due diligence begins before the reservation

Overseas property risk is best managed before urgency enters the transaction. Marketing periods, launch discounts and competing-buyer narratives can create pressure to transfer money quickly. Before paying any reservation fee, identify the legal owner, the precise property, the recipient of funds, refund conditions and the checks that remain outstanding.

A reservation agreement should not be treated as harmless simply because the amount appears small. It may set deadlines, appoint a lawyer, limit refunds or introduce a wider contract by reference. Obtain independent advice and retain a signed copy with proof of payment.

Verify ownership, title and authority to sell

Your lawyer should obtain current registry evidence and reconcile it with the seller’s identity, the physical property and the contract description. Confirm ownership shares, boundaries, rights of way, mortgages, court orders, tax charges, leases and any other rights affecting use or transfer.

Where a company, estate, attorney or developer is selling, verify the authority of the person signing. For off-plan property, the due-diligence exercise extends to land ownership, planning, construction licences, funding, escrow arrangements, completion guarantees and the developer’s delivery record.

Match the legal record to the physical building

Unauthorised extensions, converted garages, roof terraces, pools and boundary changes are common sources of delay and expense. The property viewed must match approved plans, licences, tax records and registration. Ask who is responsible for correcting discrepancies and whether legalisation is possible before completion.

A property can have a utility connection without being fully authorised for occupation. Confirm the relevant completion or habitation documents and do not rely on appearance, age or neighbouring buildings as evidence that planning is correct.

Commission independent technical inspections

The lawyer verifies legal status; a surveyor or engineer assesses physical condition. Choose an inspector who works for you and understands local construction methods and climate. The report should address structure, moisture, roofs, drainage, mechanical systems, electrical installations, pools, retaining walls and visible signs of movement.

For new property, inspect against the specification and create a written snagging schedule. Understand warranty periods, exclusions and the process for compelling remedial work. For resale homes, use findings to budget, renegotiate or withdraw where the contract permits.

Review communities, resorts and shared buildings

An apartment or resort home includes financial exposure to the wider development. Obtain community statutes, recent accounts, budgets, insurance, meeting minutes, reserve-fund information and confirmation of seller arrears. Look for planned façade, lift, roof, pool or infrastructure works that may trigger a special contribution.

Check rules covering rentals, pets, alterations, parking and commercial use. Confirm how votes are allocated and whether one owner or developer controls decisions. Service charges should be assessed against the facilities provided and the long-term condition of the development.

Test every financial assumption

Prepare a transaction statement showing price, taxes, professional fees, registration, finance, currency and immediate works. Then build an annual ownership budget covering property tax, community charges, insurance, utilities, management, maintenance, accounting and travel. Ask for evidence rather than estimates where possible.

If rental income is important, verify that letting is permitted and licences are obtainable. Use achieved comparable rents and conservative occupancy. Deduct platform charges, cleaning, utilities, repairs, management, tax and replacement of furniture before evaluating the net result.

• Written acquisition-cost schedule
• Current tax and community payment certificates
• Insurance quotations suited to the location
• Conservative rental assumptions
• Currency plan for purchase and annual costs
• Reserve for major repairs and special assessments

Read the contract as a risk-allocation document

The contract should accurately identify the parties, property, price, payment schedule, included contents, completion process and consequences of default. Conditions should cover the unresolved matters that genuinely affect your decision, such as finance, planning, survey results, licences or sale of another property.

Do not assume verbal promises or brochure claims will be enforceable. Specifications, views, completion dates, rental arrangements, furniture and remedial works should be recorded clearly. Understand which language version prevails and obtain a full translation where required.

Check tax, residence and succession consequences

Property ownership can create filing obligations even where no income is received. Obtain advice on purchase taxes, annual property taxes, imputed income, rental tax, capital gains, wealth-related charges and reporting in your home country. Residency and property ownership are separate questions and should not be conflated.

Review inheritance rules, wills, ownership shares and family objectives before deciding how to hold the property. Changing structure later may trigger tax and transaction costs. Advice should be coordinated across jurisdictions where significant assets or family members are involved.

Final checks before funds are released

Immediately before completion, your lawyer should repeat relevant registry and debt checks, confirm the completion statement and verify how funds will be transferred. Conduct a final inspection to confirm condition, agreed contents and completion of promised works. Insurance should begin at the point risk passes under the contract.

After signing, ensure taxes are paid, ownership is registered and original documents are retained. Due diligence is complete only when the legal transfer and post-completion filings are confirmed—not when the keys are handed over.