VERIFICATION OR DUE DILIGENCE OF REAL ESTATE IN SLOVAKIA

VERIFICATION OR DUE DILIGENCE OF REAL ESTATE IN SLOVAKIA

Author

Prykhodko Andrii

Due diligence (legal audit) of real estate objects or rights to it is especially relevant in order to minimize possible risks that may appear in the course of economic activity by the new owner of the real estate object.

A legal audit usually includes:

• preparation for object inspection;
• collecting the necessary information;
• analysis;
• execution of the conclusions of the report;
• making a decision based on the received information.

Generally speaking, real estate due diligence is a necessary stage of any real estate purchase, as its scope and form depend on the specific object and the buyer’s needs. That is why, turning to professionals in the field of construction and real estate transactions will help you not to get into an unpleasant situation.

Due Diligence (“Due Diligence”) is the name of the independent verification procedure in EU countries, the preparation of legal opinions at the request of the client.

What kind of real estate should be studied?

• It can be an apartment or a house, or just a plot of land or a share.
• It can be both private property and communally owned real estate.
• It can be both property under arrest and property for which there were no legal or other cases at all.

The procedure for checking the real estate object:

• The history of the acquisition of the real estate object by the owner, tracking of the entire chain of transfer of property rights to the object – a check is made of all legal documents, the legality of the acquisition of the real estate object, the information of the registers is collected, and its analysis and detailed study is carried out.
• Analysis of the land issue – the facts regarding the legality of the use or disposition of the land plot, the conformity of the location of the object on the map according to the general plan of the city are studied.
• 3Monitoring the presence of encumbrances or legal disputes regarding the real estate object – studying the issue of the presence or absence of encumbrances such as arrests, mortgages, leasing, and even open and closed legal proceedings regarding the real estate object.

As a result of due diligence, the potential buyer receives a complete picture of the real estate object. The result of the legal examination is drawing up a conclusion that highlights all the possible risks associated with the acquisition of the object, as well as an assessment of their severity. Quite often, in their conclusions, lawyers also optimize the very procedure of purchasing a real estate object from the point of view of taxation and costs for notary services.

Thus, due diligence of a real estate object can help a potential buyer identify a threat at the stage of negotiations regarding the purchase of a real estate object and avoid getting into unpleasant situations related to lawsuits.