Legal Due Diligence of Commercial Real Estate

Legal due diligence of commercial real estate, support of transactions with commercial real estate

Legal support for development projects

The acquisition of real estate has always been and remains a significant event for both individuals and legal entities. Often, this is due to the high cost of real estate and possible risks when making real estate purchase and sale transactions. When buying real estate, it is very important to understand that both trustworthy sellers and buyers and scammers can be present on the real estate market. There are no fewer schemes for deceiving sellers and buyers from year to year, in this regard, when making transactions with real estate, it is recommended to check the property. There is an opinion that when making real estate transactions, the involvement of a realtor will make it possible to secure a real estate transaction, but this is not always the case. Realtors often do not undertake the obligation to check the cleanliness of real estate and cannot guarantee the security of the transaction.

However, it is important to note that the concept of commercial real estate is not legally defined. But in practice, it is generally accepted that commercial real estate is buildings, premises, land plots and other real estate that is used to make a profit, as a rule, these are office centers and retail buildings. As a rule, commercial real estate is acquired for doing business and often, funds are invested in such real estate not only for its acquisition, but for repairs in the premises. In this regard, it is simply necessary to carry out an inspection of the real estate, therefore, by investing large amounts of money, the entrepreneur wants to receive the object clean from the rights of third parties.

Comprehensive verification of commercial real estate consists of several stages:

  1. Legal due diligence of the property. The seller must be asked for the basis for the emergence of ownership (purchase and sale agreement, donation agreement, privatization act, etc.), as well as a technical and cadastral passport for the object. After receiving this information, it is important to request information about the right holders from the information of the state register of rights to real estate. It would be more correct to request an extended extract from the Unified State Register of Real Estate, this will allow you to study information about the transfer of rights to the property. The information provided by the seller and received from the Unified State Register of Real Estate must correspond to each other, reflect cadastral data that will allow you to determine not only the actual location of the property, but also subsequently calculate the real estate tax.
  2. Legal due diligence of the seller. The seller of commercial real estate can be an individual or a legal entity. If the seller is an individual, it is necessary to check the passport, verify its authenticity, and also check the seller for registration of legal entities with the participation of this individual. If the seller is a legal entity, you must obtain an extract from the Unified State Register of Legal Entities on the website of the Federal Tax Service (such an extract can be obtained on the website of the Federal Tax Service without payment). It is also important to note that in the case of acquiring real estate from an individual, it is necessary to obtain the consent of the spouse to complete such a transaction if the seller is married. If the seller is a legal entity, it is necessary to verify the authority of the person who will sign the contract for the sale of real estate. Provided that the contract is signed by the head of the legal entity, his powers are reflected in the statutory documents, if the contract is signed by another person, a notarized power of attorney is required to perform such actions.
  3. Verification of litigation regarding the acquired property or with the participation of the seller. Litigation regarding real estate objects is not uncommon, the reasons for the occurrence of such proceedings are varied. At the same time, it is important to check not only the litigation regarding the property, but also regarding the seller himself. This can be litigation in the event of the bankruptcy of the seller, or, for example, an inheritance dispute, or a dispute during the dissolution of a marriage, etc.

Legal verification of real estate in modern conditions has become a necessity that will minimize the possible risks associated with the acquisition of real estate, as well as avoid adverse consequences for the buyer. Engaging an experienced lawyer to conduct a comprehensive due diligence of real estate will allow the buyer to make sure that the property being purchased is clean, the security of the future transaction and will save the buyer time collecting such information.

After a thorough check of the property and the seller, the lawyer will draw up a detailed report on the work done, which will reflect the full information about the property and the seller, which will allow the buyer to make a decision in the future to purchase the property or refuse to complete such a transaction.

In addition to a comprehensive check of real estate, it is also important to competently conduct a real estate purchase and sale transaction so that in the future such a transaction is not recognized, for example, as invalid, and the buyer does not lose his money.

Legal services

  1. Advising clients on legal issues related to the acquisition of commercial real estate
  2. Comprehensive due diligence of commercial real estate
  3. Preparation of a report (legal opinion) based on the results of the inspection of commercial real estate
  4. Legal support of transactions with commercial real estate
  5. Preparation of the necessary documentation for a transaction with commercial real estate

How do we work?

You send us a request to
or call on +7 (499) 755-56-50
Preliminary analysis and
initial consultation
Conclusion of legal services agreement
Project work
On each stage we inform you about results
We provide the result and prepared documents

Send us a request with a detailed description of the issue.

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+ 7 (499) 755-56-50

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