Legal and technical real estate due diligence provide a clear basis for deciding investment and determining purchase price. The risks arising in the course of the audit are identified and can thus be priced. "Leave no stone unturned": in considering leases and tenant structure, this principle applies.
The results of legal and technical due diligence determine the contractual agreements necessary to describe the object of purchase or the content of the company (share deal) and liability (warranties, disclaimers and limitations of liability). Due diligence is carried out prior to closing (Pre Acquisition Audit). But also thereafter, a due diligence may be necessary (Post Acquisition Audit).
The Following Tests Are Performed as Part of Due Diligence:
- Contract reviews (rental agreements, insurance contracts, facility management contracts, contracts with utilities, employment contracts, etc.)
- Examination of easements, rights of use, land registers
- Track record of litigation in recent years
- Public examination including fire protection
- Quality inspection of the building including its building services and energy efficiency
- Identification of possible further costs for repair, upgrading, refurbishment or redevelopment of the property
- Legal and technical investigation of the possibilities of change of use