International Property Due Diligence Checklist: 50 Checks Before You Buy
Buying property overseas involves navigating a legal, financial, and practical landscape that differs fundamentally from purchasing in your home country. The consequences of skipping due diligence — from disputed title and planning enforcement to developer insolvency — are severe, and resolving them in a foreign jurisdiction is slow and expensive.
This checklist covers 50 checks across five categories. Not every check will be applicable to every purchase (a completed resale in Spain requires different attention to an off-plan villa in Bali), but the structure provides a comprehensive framework.
Use this alongside your independent legal adviser — it is a prompt list, not a substitute for professional advice.
Category 1: Legal Title Checks (10 Items)
Verify the title deed type. Different countries use different forms of title — freehold, leasehold, hak milik, hak pakai, strata title, and others. Understand which type you are acquiring and what rights it confers. In Bali/Indonesia and Thailand, foreigners cannot hold freehold land directly; the permissible structures are different.
Confirm the registered owner. Obtain a copy of the current title deed from the land registry (or equivalent). Confirm that the person or entity selling the property is the registered owner. Do not rely on documents presented by the developer or agent — go directly to the registry.
Check for encumbrances. Search for mortgages, charges, and other financial encumbrances registered against the property. If a mortgage is registered in favour of a bank, it must be discharged before or at completion.
Identify any liens or court orders. In some jurisdictions, tax liens, contractor disputes, or court orders can be registered against a property and pass with the title. Search thoroughly.
Check for easements and rights of way. Confirm whether any third parties have registered rights over the property — rights of way, utility easements, neighbouring property rights — that might restrict your use.
Verify planning compliance. Confirm the permitted use of the property matches what you intend. A property built or extended without planning permission may be subject to demolition orders. Check with the local planning authority.
Check the building permit. Every building should have a valid building permit (licencia de obras / building permit / etc). Absence of a permit is a serious issue.
Confirm an occupation certificate (habitation licence). Many jurisdictions require a licence to occupy (cédula de habitabilidad / certificate of occupancy) before a property can be legally used as a dwelling. Without this, connecting utilities may be impossible.
Establish land boundaries precisely. Particularly for standalone villas and land plots, confirm exact boundaries match the title plan. Boundary disputes are a common and expensive problem, particularly in rural areas.
Investigate any co-ownership. Where property was previously co-owned or inherited, confirm all owners have consented to and signed the sale documents. Co-owners with inheritance rights who have not signed can challenge a transaction.
Category 2: Developer Checks (8 Items)
Verify developer registration and licensing. Confirm the developer is registered with the relevant authority. In Dubai, RERA registration is mandatory. In Spain, developers must hold certain licences. An unregistered developer is a red flag.
Check for escrow protection. For off-plan purchases, confirm that your payments will be held in a regulated escrow account and can only be released upon completion milestones. In Dubai this is a legal requirement; elsewhere you should insist on it contractually.
Assess the developer's track record. How many projects have they completed? Visit or research completed developments. Speak to previous buyers if possible. Online reviews and forums for each market often flag problematic developers.
Confirm planning permission for the specific development. Planning permission should be in place before you pay any substantial sum. Developments marketed before planning is confirmed carry real risk.
Understand completion guarantees. What happens if the developer does not complete on time? Is there a penalty for late delivery? Is there a completion bond or insurance policy? Weak contracts on completion risk are a major exposure on off-plan purchases.
Review warranties. New builds in many countries carry structural warranties of 10 years (similar to NHBC in the UK). Confirm what warranty applies, who provides it, and how claims are made.
Run an insolvency check. Confirm that the developer is not subject to insolvency proceedings, bankruptcy petitions, or significant unpaid creditor claims. A local lawyer or credit agency can run this check.
Obtain references from previous buyers. Independent testimonials from buyers of the developer's previous projects are among the most reliable indicators of what your experience will be like.
Category 3: Financial Checks (7 Items)
Get a complete cost breakdown before committing. The purchase price is not your total cost. Obtain a written breakdown of all costs: purchase taxes, stamp duty, VAT, legal fees, notary fees, agent fees, land registry fees, and any other charges. Typical total additional costs range from 3–4% (Dubai) to 8–12% (Spain) on top of the purchase price.
Understand ongoing costs. Annual costs including service charges (community fees), local property taxes (IBI in Spain, ENFIA in Greece, council tax equivalents elsewhere), insurance, and property management fees. These can materially affect your net yield.
Validate rental income projections independently. Developer or agent rental income forecasts are typically optimistic. Research comparable properties on Airbnb, Booking.com, or local lettings portals. Speak to independent property managers. Apply realistic occupancy rates (60–70% for holiday lets is often more accurate than the 80–90% developers imply).
Assess exchange rate impact on total costs. If your income is in one currency and the property costs are in another, calculate your total exposure. See our currency hedging guide.
Understand mortgage terms if applicable. If financing the purchase, read the mortgage offer fully — LTV, rate type, penalty for early repayment, legal recourse available to the lender if you default. See our international mortgages guide.
Clarify your tax obligations in both countries. Rental income, capital gains on eventual sale, annual wealth taxes (where applicable), and inheritance tax — all must be understood before purchase. Refer to our guides on double tax treaties and tax residency.
Understand capital repatriation rules. Can you freely convert and repatriate sale proceeds? Egypt, Indonesia, and Thailand have rules governing capital repatriation that may limit or delay your ability to bring proceeds back to your home country. Confirm these rules in advance.
Category 4: Legal Representation (5 Items)
Appoint your own independent lawyer. Do not use the developer's lawyer or the agent's recommended lawyer without verifying independence. Use a lawyer you sourced independently or through a trusted referral.
Confirm bilingual capability. Your lawyer should be able to work in both English and the local language. All contracts and correspondence should be available in English. Never sign a contract you cannot read.
Verify local bar registration. Confirm your lawyer is registered with the relevant local bar association (Colegio de Abogados in Spain, Κυπριακός Δικηγορικός Σύλλογος in Cyprus, etc.) and that there are no disciplinary records.
Address conflicts of interest. Confirm in writing that your lawyer has no financial relationship with the developer, agent, or any other party to the transaction.
Agree fees in writing before engagement. Obtain a written fee estimate covering all anticipated work. Understand whether the fee is fixed, hourly, or a percentage of the purchase price.
Category 5: Physical Inspection (10 Items)
Commission an independent structural survey. Always commission an independent structural inspection before exchange — do not rely solely on the developer's or seller's representations. This is standard in the UK; it is equally important overseas but often skipped.
Prepare a snag list for new builds. For off-plan or new-build properties, arrange a professional snagging survey at handover — before you sign the handover documentation. Signing off on handover typically releases the developer from responsibility for visible defects.
Confirm utility connections. Verify electricity, water, gas (if applicable), and drainage connections are legal and operational. Check that meters are registered in the correct name or can be transferred.
Test broadband and mobile connectivity. Particularly relevant for properties in rural or mountainous areas (Bali, Greek islands, Spanish countryside). Poor connectivity affects both usability and rental appeal.
Conduct a noise and traffic assessment. Visit the property at different times of day and week. Proximity to roads, flight paths, late-night entertainment areas, or construction sites may not be apparent from a weekend daytime viewing.
Meet or research the neighbourhood and community. For apartments, the condition and management of the building's communal areas, the competence of the homeowners' association or management company, and the attitude of neighbouring owners all matter. A well-located flat in a poorly managed building is a problem.
Assess flood risk. Check whether the property is in a flood zone. In some markets (Bali during monsoon season; coastal areas in Spain, Greece, Egypt), flood risk is a real concern that affects both insurability and rental viability.
Check natural disaster risk. Some markets carry seismic risk (Greece, Indonesia), wildfire risk (Greece, Spain), or tropical storm risk. Assess whether adequate insurance is available and at what cost.
Investigate environmental issues. Check for proximity to waste sites, industrial facilities, or contaminated land. In some markets, development has occurred on land with previous industrial use — this can affect title and habitability.
Verify the physical condition matches the listing. It is not unheard of for properties to be sold with fixtures, fittings, or contents that are missing at handover, or for photographs to show a neighbouring property with better views. Inspect in person before exchange.
Category 6: Documentation (10 Items)
Have all contracts reviewed by your lawyer before signing. This applies to reservation agreements, preliminary contracts, and the final purchase deed. Never sign under time pressure.
Get all verbal promises confirmed in writing. Developer promises about communal facilities, finishing specifications, rental management services, or resale assistance should be in the contract or in a written side letter. If it is not in writing, it cannot be enforced.
Confirm the payment schedule is set out in the contract. Staged payments must be tied to specific milestones (foundation completion, structural completion, fit-out, handover) — not arbitrary dates.
Check completion dates and penalty provisions. Late delivery of off-plan properties is common globally. Confirm what compensation (if any) you are entitled to for delays, and whether you have the right to withdraw if delays exceed a specified period.
Confirm dispute resolution provisions. If something goes wrong, how and where will disputes be resolved? Local courts? Arbitration? The jurisdiction clause matters — disputes resolved in a foreign court can be difficult to pursue.
Arrange buildings insurance before completion. Do not complete without adequate buildings insurance in place. Confirm the policy covers the property type, the sum insured, and any specific local risks (earthquake, flood, etc.).
Review your will and succession planning. Owning property overseas may create succession issues in the destination country, particularly in countries with forced heirship rules (France, Spain, Greece, Indonesia). Take advice on whether your existing will is valid in the destination country and whether a local will is needed. EU Regulation 650/2012 (Brussels IV) lets EU residents elect their national law to govern their estate; since Brexit UK nationals can generally no longer elect UK law — take specialist advice.
Register for local tax obligations. Confirm with your lawyer whether you need to obtain a local tax identification number (NIE in Spain, AFM in Greece, etc.) and register for any local taxes. Failure to register can result in penalties.
Understand power of attorney requirements. For buyers who cannot be present for signing, a notarised power of attorney appointing a local representative is typically required. Prepare this in advance.
Retain all currency transfer documentation. In several markets — including Egypt, Thailand, and the Philippines — you may need to prove that the purchase funds were imported as foreign currency in order to repatriate proceeds on sale. Retain bank transfer confirmations and Foreign Exchange Transaction certificates.
Summary
No checklist replaces professional legal, financial, and structural advice. This list is a framework to help you ask the right questions and ensure that nothing critical is overlooked.
The most expensive mistakes in overseas property buying arise from rushing the process, relying on the developer's team rather than independent professionals, or assuming that what is standard in your home market applies in another jurisdiction.
How Global Investments Can Help
Global Investments has guided clients through property acquisitions in eight markets for over 32 years. We work with experienced, independent lawyers, surveyors, and tax advisers in each market and can help ensure that every material check is completed before you commit.
Contact us to discuss your planned purchase, or explore our listings and location guides for more on specific markets.
This guide is educational and does not constitute legal, financial, or professional advice. The checks listed are a guide only — the specific requirements and applicable law vary significantly by jurisdiction. Always appoint qualified independent professionals before purchasing.
Frequently asked questions
Why is due diligence harder for overseas property than domestic property?
Several factors compound the complexity: you may not speak the local language; legal systems and property registration frameworks differ from your home country; you may not be physically present to inspect the property; local agents and developers have asymmetric information; and the consequences of a problem — legal disputes in a foreign jurisdiction — are expensive and slow to resolve. Thorough due diligence, with independent professional representation, is not optional for serious overseas buyers.
Do I need my own lawyer, or can I use the developer's lawyer?
You should always appoint your own independent lawyer — never rely solely on the developer's legal team. The developer's lawyers act in the developer's interest. In Spain, Cyprus, Greece, and most other markets, it is standard practice (and strongly advisable) to use a bilingual independent lawyer registered with the local bar. Your lawyer should review all contracts before you sign anything and confirm that the title is clean before any payment is made.
What is an escrow account and should I insist on one?
An escrow account is a third-party account (typically held by a law firm or regulated entity) that holds your deposit or staged payments until specified conditions are met — typically practical completion. In Dubai, escrow for off-plan sales is legally required by the Real Estate Regulatory Agency (RERA) — developers must hold buyer funds in regulated escrow accounts. In markets where escrow is not mandatory, you should try to negotiate for your payments to be held in escrow, particularly for off-plan purchases. If a developer refuses, treat this as a serious warning sign.
What should I look for in a physical inspection of an overseas property?
At minimum: structural integrity (cracks, subsidence, damp), roof condition, condition of building services (plumbing, electrical, HVAC), evidence of any unpermitted alterations, condition of common areas (if applicable), utility connections and meters, broadband/telecoms infrastructure, environmental concerns (flood risk, proximity to industrial sites), and noise/traffic assessment at different times of day. For new-builds, a full snag list at handover — prepared with a professional snagging surveyor — is essential.
What documents should I never sign without legal review?
Never sign a reservation agreement, preliminary contract (promissory contract / compromis de vente / contrato de arras), purchase agreement, or any document that commits you to a payment without your independent lawyer having reviewed it first. Some documents that appear informal (reservation forms, offer letters) can be legally binding under local law. Verbal promises from agents or developers should be confirmed in writing before any sum is paid.
This guide is for general information only and does not constitute financial, legal or tax advice. Programme rules, prices and tax rates change; verify current requirements with a qualified adviser before acting.