The importance of the Due Diligence for real estate

The main documents useful for conducting real estate due diligence are:

• Title deed

• Cadastral report and floor plan

• Building permits

• Habitability/occupancy certificate

• Mortgage report

A good starting point for document verification is the title deed. From this, it is possible to reconstruct much of the property's history in terms of ownership transfers and the relevant building permits up until the last public deed. Cross-referencing the title deed with the historical cadastral report and building permits allows for the identification of any potential violations, both from an administrative and urban planning/cadastral perspective.

Among the most common violations, we highlight the possibility of a cadastral floor plan or graphical documents attached to a building permit that do not match the actual condition of the property, as well as discrepancies in the property owners compared to those interfacing with the buyer. Other aspects to consider include any mortgages registered on the property or the possibility that the property has been acquired through actions that do not protect the buyer from third-party claims, such as donations and inheritance.

The cost of real estate due diligence varies depending on the type of property but typically ranges between 0.8% and 1.5% of the sale price. However, it is included in our services if the property is being marketed.