Investment approach
Checking a Building for a Large Buyer: Technical and Legal
Findings are sorted into deal-breakers, price adjustments and closing conditions. In the worked example the expected adjustment was 7.1% of the price of a 10 M€ building.
Due diligence on a building for a large buyer is built not around a list of documents but around consequences: what stops the deal, what lowers the price and what becomes a closing condition. In the worked example a 10 M€ building gets an expected adjustment of 7.1% of the price, and almost two thirds of it comes from a single item: the façade and roof under the ITE. The rules were checked as of 12 October 2026.
How to sort findings: stop, price, condition
| Group | Examples | What to do |
|---|---|---|
| Deal-breaker | Heritage protection at level A–C if the plan needs demolition; a gap between the registry and the actual area that cannot be corrected | Walk away or change the plan |
| Price adjustment | ITE defects, lift, layouts without a cédula, tenants with fixed terms | Estimate with a budget and deduct |
| Closing condition | Cédulas, release of encumbrances, seller's certificates | Write into the contract, pay after fulfilment |
The sorting is needed so as not to deduct from the price what must be fixed before the deal, and not to buy what cannot be fixed.
The technical package
ITE. All buildings with housing undergo an inspección técnica (mandatory building inspection) before they reach 45 years, and its validity depends on the result: 10 years with no or minor defects, 6 years with important ones (apto provisional) and 3 years with serious defects where measures have been adopted (Generalitat). A repair programme is submitted within a year for minor and important defects and within six months for serious ones. The absence of a report where one is mandatory is a serious breach. Ask for the report itself, not a certificate that it exists. On the procedure itself: ITE in Catalonia.
The cédula for each apartment. Housing must hold a cédula de habitabilidad (habitability certificate) at the time of transfer; for new apartments it is valid for 25 years, for others 15 (Decret 141/2012, art. 9). If the buyer intends to renovate or demolish second-hand housing, the buyer may release the seller from handing over a cédula (art. 10): a technician's report is needed for a renovation, and a municipal certificate for demolition. This is worth writing into the escritura (notarial deed) in advance, otherwise the seller must hand over each one.
Heritage protection. Barcelona has four protection levels, A, B, C and D. At levels A–C demolition is prohibited and maintenance is mandatory, and at level D demolition is allowed after an approved historical study (Ajuntament). The level is looked up in the building's record on the city information portal.
Structure, damp, asbestos. Methods for assessing damage are covered in the articles on cracks and damp and asbestos.
The legal package
Reconciling the registry entry with the cadastre and the real building: the reconciliation article. A rent roll with contracts, terms and possible extensions: the buyer takes on the contracts (art. 14 LAU), and counting them is helped by the article on a building with tenants. The seller's status: a legal entity with five or more apartments in Barcelona is a gran tenedor (large holder), and if it is entered in the Registre de grans tenidors, the Generalitat may apply tanteo (right of first refusal) to the sale of its apartments (Llei 11/2025, art. 6); the answer takes up to two months plus 15 days if there is an inspection (Generalitat). The seller's tax regime, IVA or ITP (Spanish VAT or property transfer tax), determines the buyer's rate: 20% on the residential part when one person buys the whole building (ATC).
How to turn findings into price: a worked example
Worked example, not a forecast. The building price is 10 M€, the cost of capital 8% a year, and one month of closing delay costs 66,667 €. Probability is the judgement of the technician and the abogado (lawyer), not statistics.
| Finding | Estimate, € | Probability | Expected, € |
|---|---|---|---|
| Façade and roof, serious ITE defects | 450,000 | 100% | 450,000 |
| Lift, bringing it into compliance | 120,000 | 60% | 72,000 |
| Three apartments without a cédula, layout fixes | 180,000 | 50% | 90,000 |
| Two apartments, dispute over a contract extension | 140,000 | 30% | 42,000 |
| Closing delayed 2 months because of tanteo | 133,333 | 40% | 53,333 |
| Total | 707,333 |
The expected adjustment of 707,333 € is 7.1% of the price. The calculation is for the buyer, to see which discount closes the risk and which does not. The seller is shown a list of findings with documents, not a percentage.
When the package will not help
The package will not help if the seller does not open the building for inspection: the technical part remains an assessment from documents, and the unknown has to be built into the price. For those buying "as is" with no right to withdraw from the deal, the package gives information but not leverage: the contract is already signed. DNPI Capital has no completed projects involving whole buildings; the completed ones are the plot in Sitges and the apartment on Compte de Urgel, so this is a method, not a result.
Next step: enter the findings and probabilities into the deal analysis, and take the general document list from the article on due diligence in Barcelona.
Questions and answers
When is an ITE mandatory in Catalonia?
For buildings with housing before they reach 45 years (Generalitat). After that the term depends on the result: 10, 6 or 3 years.
Is a cédula needed for every apartment in a building?
Yes, housing must have a cédula at the time of transfer (Decret 141/2012, art. 9). A buyer who will renovate second-hand housing can release the seller from handing it over (art. 10).
Can a protected building in Barcelona be demolished?
Not at protection levels A, B and C. At level D, demolition is allowed after an approved historical study (Ajuntament).
Who carries out the check of a building?
A technical consultant (arquitecto) inspects the building and prepares budgets, an abogado checks the registry, contracts and tanteo, and an asesor fiscal (tax adviser) determines the tax regime of the deal. The buyer decides, but it is easier to divide the roles in advance than to assemble conclusions afterwards.
