When buying property abroad, excitement can cloud judgment. But skipping proper due diligence is one of the costliest mistakes you can make. Legal pitfalls, disputed titles, zoning surprises, and unpaid taxes can turn your dream property into a nightmare.

This article lays out the essential legal due diligence steps every buyer should take before signing a contract, customised for international real estate purchases.

Why Due Diligence Matters

• Confirm Ownership & Legal Title

• Detect Encumbrances or Debts

• Ensure Zoning Compliance

• Validate Building Permits & Land Use

• Avoid Scams & Fraudulent Listings

• Confirm Rental or Resale Legality

Step 1: Verify Legal Ownership

• Request a recent title deed or land certificate.

• Ensure the seller is the registered owner.

• Inquire about joint ownership, inheritance rights, or third-party claims.

• Ask for the property registration number and cross-check with land registry databases.

Example Red Flag:

• In Bali, foreign buyers using nominee agreements may find the nominee refuses to transfer the property later, often legally impossible to enforce.

Step 2: Check for Encumbrances & Debts

• Conduct a title search through a lawyer or public registry.

• Look for mortgages, liens, unpaid taxes, or legal disputes.

• Ask for a "nota simple" in Spain or an official land extract in Türkiye.

Pro Tip:

• Title insurance (available in the U.S. and select EU markets) protects against hidden claims.

Step 3: Confirm Land Use & Zoning Compliance

• Ensure property use matches your goals (residential, commercial, mixed-use).

• Check for protected lands or zoning restrictions.

• Research potential changes in land use policies or urban planning.

Example:

• In Thailand, a condo project may be built in a zone that prohibits short-term rentals.

Step 4: Validate Building Permits & Construction History

• Ask for construction permits, habitation certificates, and completion approvals.

• Confirm that additions or modifications are legally approved.

• In off-plan projects, ensure the developer has a valid license and performance guarantee.

Red Flag:

• In Türkiye, illegal expansions or modifications without permits are common in resale properties.

Step 5: Tax & Utility Debt Check

• Ask for evidence that all property taxes, utility bills, and maintenance fees are paid.

• Some jurisdictions require a tax clearance certificate before transfer.

• Check whether there are community association debts attached to the property.

Warning:

• In Portugal, unpaid condominium fees can follow the new owner.

Step 6: Legal Compliance for Foreign Buyers

• Understand foreign ownership rules (e.g., no freehold land for foreigners in Bali).

• Ensure your ownership method complies with local law—consider leasehold, strata, or company ownership.

• Check if military clearance or residency approval is required.

Step 7: Cross-Border Money Transfers & Contracts

• Use official escrow services, not direct seller payments.

• Confirm currency controls or capital gain repatriation limits.

• Ensure your purchase agreement is bilingual and legally binding.

Step 8: Choose a Qualified Legal Professional

• Avoid using the seller’s lawyer or agent.

• Hire a licensed real estate attorney who works with foreign buyers.

• Request written legal opinions and check their license credentials.

Step 9: Due Diligence for Off-Plan Projects

• Verify the developer’s license, experience, and delivery history.

• Request a copy of the building license, master plan, and escrow structure.

• Look for government project approvals and performance guarantees.

Red Flag:

• In Dubai, only buy from RERA-registered developers with an approved escrow account.

Step 10: Ensure Proper Registration Post-Sale

• Registration finalises your legal ownership.

• Delays or omissions can result in legal challenges or fines.

• Always obtain the updated title certificate or land book entry after purchase.

Legal Due Diligence Checklist

• Verify the title deed and ownership.

• Conduct a lien and encumbrance search.

• Review zoning and land use regulations.s

• Check permits and building approval.s

• Ensure taxes and fees are paid.

• Understand foreign buyer restrictions.

• Hire an independent local lawyer.

• Confirm legal contract format.

• Vet off-plan developer credentials

• Register the property legally.

Final Thoughts

Skipping due diligence in global real estate is not just risky—it’s potentially catastrophic. From ownership disputes to regulatory violations, the consequences of overlooking even one legal detail can cost you thousands.

Investing internationally offers amazing opportunities, but only if you protect yourself with rigorous legal checks, professional advice, and verified documentation.

Do your homework now, so your investment doesn’t become a liability later.