“Prikhodko&Partners” Law Firm recommends preliminary due diligence before concluding a real estate transaction.
Legal due diligence of real estate objects is the calculation of certain risks when concluding real estate transactions.
Expertise makes it possible to identify hidden problems, due to which there is a possibility of recognizing the contract as invalid.
Why is legal due diligence necessary?
- In some cases, expertise can reduce the cost of the transaction.
- Legal expertise allows you to identify inaccuracies in documents and identify risks when concluding a transaction.
- Legal due diligence avoids a conflict of interest between the owner and the buyer.
- Legal expertise determines how to protect interests in a real estate transaction.
- This procedure will avoid further litigation, claims, etc.
Legal due diligence includes the following stages of verification:
- Carrying out an inspection of the property
This is the first stage in checking the property, lawyers check whether it belongs to non-residential / housing stock, which persons are registered at this address, whether the property is under arrest or subject to mortgage.
- Checking the package of documents regarding the property
A legal examination of the technical and permitting documentation for the facility is being carried out in order to establish its real state, whether there have been uncoordinated redevelopments, extensions, etc.
One of the main aspects of the legal expertise of real estate transactions is the verification of the object of the transaction. A real estate seller may hide some features of an object from a potential buyer: for example, real estate may be mortgaged, secured, under arrest, real estate is the subject of a lawsuit, a minor or minor child is registered in an apartment or house, etc.
- Checking information about counterparties
A check is made on the parties to the transaction regarding the property. First of all, the powers of the parties to sign the transaction are checked.
When buying real estate on the secondary market, fraudulent schemes are as common as in the cases described above. It often happens that the seller of real estate is not its owner at all or the owner of only part of the property. To establish the true owner of real estate and prevent fraud, it is necessary to study the title documents for the apartment, information from the State Register of Real Rights to Real Estate, as well as the existence of litigation against the seller.
The law firm “Prikhodko&Partners” will help you conduct a quality legal due diligence before concluding a real estate transaction. Our team will provide comprehensive support for legal audit.