If you’ve made the decision to acquire land for development or a property with existing construction (be it a house, apartment, building, condominium, etc.), consider conducting legal and registry studies to ensure they aren’t associated with any issues.
Due diligence is the right process to ensure you’re making an informed decision about a property. Due diligence includes, but is not limited to, the following:
Verification of the registered owner, whether an individual or a company. In the case of a company, reviewing its constitutive agreements and changes, as well as the powers of attorneys for sales.
Confirming whether the title corresponds to the property being sold. Reviewing the topographic plan, including measurements, boundaries, easements, and other details. Checking for any liens and/or annotations on the property, such as mortgages, liens, easements, and administrative limitations. Ensuring the property is up to date with tax payments and other municipal obligations.
Checking if the property is covered by any insurance. Confirming whether the property is being purchased with an existing loan. Validating through a Land Use study that the property is suitable for the intended purpose by the potential buyer. Reviewing the Regulatory Plan of the area where the property is located to be aware of possible construction limitations.
Analyzing the availability of basic services in the area: telephone, electricity, water, cable TV, sewage, and waste collection. Existing or potential lawsuits that may affect the property. Checking for any lease agreements on the property. If the property is within a condominium, ensuring compliance with condominium obligations. Environmental study of the property, among other aspects.
