Whether it is the purchase of your first property or the purchase of a property as a business, investment or for retirement, in all cases, the most important thing to consider, is to be certain that the property you are purchasing is in optimal and basic legal conditions to be transferred at the time of your purchase.
If you are interested in acquiring a property and think about the risks that this implies, it is important that your decision to proceed with the purchase is informed, updated, advised and most importantly, safe. That is why a due diligence is important today and may be of interest to you.
What is a real estate due diligence?
It is a legal investigation process where information and documentation on the real estate to be acquired is collected. Said information is thoroughly analyzed in order to determine the existence or not of risks that legally could represent a problem in the future for the acquirer. In other words, it is knowing the legal status of a real estate property.
What is it for and when is it carried out?
As a result of the legal investigation, the real estate due diligence can give the future buyer an idea of the legal situation of the property that intends to acquire, in this sense, the acquirer will be able to make an informed decision and thus safely proceed with the purchase of the property and thus, secure the investment.
Due diligence is generally agreed upon in the purchase negotiation process, so once the terms and conditions of the purchase have been agreed at the time that the buyer and seller sign the purchase promises contract, the due diligence will be performed in order to provide the buyer a margin that allows him to make the decision to buy or not to buy or in any case,renegotiate the terms and conditions of the purchase.
When does due diligence end and what should i expect?
Once the process of analysis of the information and documentation collected has been completed, the preparation and eventual issuance of an opinion will delivered to the client, which will contain a legal opinion that may contain: i) The viability and security of the transaction, ii) The non-viability of the transaction, iii) The risks or possible risks that could affect the property and put the acquirer’s investment at risk, iv) The corrective or necessary measures that must be carried out prior to signing the final deed, with the purpose of which the acquisition by the buyer is safe and does not represent a future risk for its patrimony.
Is it necessary or not?
From our perspective and for the legal security of our clients, a due diligence is necessary for each real estate operation, whether private or ejido transactions. At CC Attorneys at Law, we specialize in real estate and agricultural due diligence with vast experience and satisfactory results for you clients.