Background check of targeting property
When we talk about due diligence, we mean to be careful and check everything about the property. We gather all the necessary information and look for any problems with the legal status of the property. This will help you decide whether it is a good idea to buy or rent a property and whether there are any risks involved.
When Do You Need Real Estate Due Diligence in Georgia?
You may need our legal services regarding due diligence of real estate in Georgia in the following situations:
- Buying from a developer (not yet built): Before you decide to buy a property or invest in Georgia that a developer plans to build.
- Buying from a developer (new): When you are thinking of buying a property that the developer has just completed construction.
- Buying from a previous owner: If you want to buy a property that was previously owned by someone else.
What Our Due Diligence Service Covers?
Our law firm in Tbilisi will help you with the legal inspection of the property, which includes:
- Checking for Debts: We look to see if there are any unpaid debts related to the property.
- Checking Other Properties: If you're buying from an individual, we check if they own other properties to understand if they have enough money.
- Checking the Developer's Reputation: We try to find out if the developer has done a good job on previous projects, but we might not find much information.
- Finding Legal Problems: We look for any legal issues with the property, like loans, restrictions, or other obligations.
- Looking at Power of Attorney: If someone else can make decisions about the property, we make sure it's all legal.
Why choose LTA's Real Estate Due Diligence Service?
Our experienced lawyers will perform legal due diligence on the real estate, ensuring risk mitigation, financial understanding, helping you see how much property the seller owns and whether they are financially stable. We will introduce you to the history of the developer, which is important to know in advance in order to understand whether the developer has successfully completed previous projects.
We will provide you with complete information regarding the property, on the basis of which you will make wise decisions when purchasing or renting the property.
FAQs
When does Due Diligence start in Georgia?
Due diligence usually occurs after the signing of preliminary agreements by both parties to the transaction-that is, upon the signing of an LOI or MOU, which ushers in a detailed investigation of all financial, legal, and operational aspects of the business or asset concerned until the actual transaction. The specific timing may vary given the nature of the deal and the parties' respective arrangements.
What are the main components of real estate due diligence?
The main components of real estate due diligence are thorough property inspection, legal review, financial assessment, and analysis of the neighbourhood and community.
What financial aspects should I review during due diligence?
Financial aspects that you should review during due diligence are the property's financial records, market analysis, valuation, and current & past property tax obligations.
Can due diligence be done after the purchase?
While most due diligence should be completed before negotiating and purchasing, some activities like property management and ensuring compliance can continue after the transaction.
