The Due Diligence Process for purchasing a property

Are you about to buy a property or are you planning to buy a property?

The purchase or sale of a real estate or property is a fundamental and important decision, which can have a positive or negative influence on the economic or personal level.

The due diligence study, also known as "due diligence", allows us to provide you with advice prior to the purchase of the property, which allows you to make the right decision and the purpose you want to carry out.

 The due diligence is the previous process of study of the real estate, verifying that it is in optimal conditions, from the legal point of view, hidden defects, that will influence the decision of the future buyer.

What aspects to take into consideration?

1. The legitimacy of the seller: 

The legitimization is the authorization granted by law to a subject, so that he can act, in his own right or on behalf of another, at the time of purchase.

One of the important steps after the verification of the legal standing is to verify the marital status of the seller, if the seller is a natural person with legal standing. The marital status is important, since eventually if the seller is in the process of divorce, it can generate inconsistency at the moment of the sale.

2. Verification of the existence of annotations

The annotations are processes that are in the process of being processed, which can affect the purchase and sale of a property, for example: constitution of mortgage, purchase and sale with better right, seizure decree, among others.

3. Verification of encumbrances: 

The encumbrances are burdens that support a real estate property. The encumbrances are not implications that affect the purchase and sale of the property, it is important to carry out the due study of the same ones to know which is the degree of implication on the purchase.

4. Review of the cadastral plan of the real estate:

In the same way that the real estate, that is to say, the property can contain encumbrances, the cadastral plans can have limitations by institutions that limit and are going to harm the purchase.

5. Verification of Municipal Tax Certification up to date:

It is important to verify in the corresponding Municipality, that the real estate as a taxable event is up to date with the Municipal Taxes.

6. Land Use Certification

Whatever the purpose of purchasing the property, it is important to verify before the corresponding Municipality that the property is suitable for construction. This verification is done through a Land Use certification.

At RJM Abogados, we provide you with complete prior advice before making your fundamental purchase decision.

Sianny Chacón S