The big difference between a good and a bad auction deal rarely lies in the bid: it lies in what is reviewed before bidding. The property is awarded with its charges, and the buyer takes on some of them. That is why registry due diligence is non-negotiable.
The basic rule: what is cancelled and what survives
When a property is awarded at auction, the charges registered after the one that triggered the enforcement are cancelled; the earlier ones, ranking ahead, survive and are taken on by the successful bidder. Knowing the position of the charge being enforced is therefore the most valuable piece of information in the whole operation.
Request the land registry extract (nota simple)
It is the first document to request from the Land Registry. It shows ownership, the description of the property and, above all, the registered charges and their order. It must be recent: an extract from months ago may not reflect the current situation.
Identify the charges that survive
Prior mortgages, easements, seizures ranking ahead or tax liens may survive the auction. If you buy, you take them on in addition to the auction award price. This is the point where most deals go wrong.
Review the debts that do not appear in the registry
The IBI (property tax) of the last few years (with a real charge over the property) and the community of owners' fees for the current year and the three preceding ones do not appear in the land registry extract, but the law ties them to the property and the new owner pays them.
Check the occupancy status
The auction notice usually indicates whether the property is occupied and on what basis. An occupant with a prior lease, or the debtor themselves living inside, completely changes the calculation. Here it is worth reviewing how to act when facing an occupied property.
But the law ties them to the property: the successful bidder pays the most recent IBI receipts and the community of owners' fees for the current year and the three preceding ones. Request a debt certificate from the community of owners and check the IBI situation before bidding.
Checklist before bidding
Gather and verify: an up-to-date land registry extract, the registry position of the charge being enforced, the community of owners' debt certificate, the IBI situation, the property's occupancy status and a realistic market valuation. Only with all of that on the table can you set a maximum bid price with sound judgement.
If it is your first time, it is worth understanding well how the purchasing process at a judicial auction works, considering the auction transfer (cesión de remate) as an alternative and comparing the different real estate investment routes to choose the one that fits your profile.
At Equus Capital we carry out the full due diligence of auctions in Valencia and throughout Spain: we analyse charges, debts and occupancy before you bid, so you know exactly what you are buying. First consultation free and with no obligation.
Frequently asked questions
Does the buyer pay the charges on a property at auction?
It depends on their registry position. The charges registered before the one that triggers the enforcement survive and are taken on by the successful bidder; those registered afterwards are cancelled upon the award. That is why it is essential to review the land registry extract before bidding.
Where can I see the charges on a property at auction?
In the land registry extract (nota simple) from the Land Registry, which reflects ownership and the registered charges in their order. It must be recent so that it shows the real situation at the time of the auction.
Are community debts and IBI inherited when buying at auction?
Yes, in part. The successful bidder is liable for the community of owners' fees for the current year and the three preceding ones, and for the outstanding IBI by real charge. These debts do not appear in the land registry extract, so they must be requested separately.
Can I go in to see the property before bidding?
Usually the interior cannot be visited, especially if it is occupied. That is why the documentary review (charges, debts, occupancy) and the external valuation are even more important before deciding on the bid.