Real estate due diligence
Real Estate Due Diligence is a technical verification activity that takes the form of a 360-degree assessment of the condition of a Property or real estate by highlighting:
- urban, environmental and cadastral compliance
- the possible presence of land constraints (environmental, monumental, infrastructural or landscape), mortgages or easements
- The condition of the structure and facilities, including aspects related to safety and earthquake standards
The value of this activity is particularly evident in the context of real estate purchase and sale transactions, where the Parties need to know the fair value of the property, its possible compliance with current regulations and destination requirements, for an accurate assessment of the risks associated with the investment. Not only that, the transparency and reliability of a Due Diligence on the status of a Property also prove to be valuable elements for the normal management of an asset and for those who have to decide, in the short as well as in the long run, on the best exploitation opportunities.
URBAN VERIFICATION | Verification is based on a review of the urban planning documentation (Master Plan, zoning designation, current regional and national laws) and the project feasibility study. The audit typically targets undeveloped land and is the basis for being able to undertake a proper investment.
ENVIRONMENTAL VERIFICATION | Verification is based on the review of environmental documentation (including Certificates and permits issued by the Competent Authorities) and visual verification of the state of the Property in order to assess compliance with environmental legal requirements. In addition, a random soil examination is conducted. This analysis is the basis for being able to take the correct and effective actions aimed at resolving environmental issues and minimizing risk, while complying with mandatory laws.
VERIFICATION OF ELECTRICAL AND MECHANICAL SYSTEMS | Verification is based on examination of the design documentation and visual inspection of the condition of electrical, mechanical, fire protection systems and lifting devices, in accordance with applicable current regulations. In addition, a sample test on proper operation is conducted.
STRUCTURAL VERIFICATION | The structural technical verification of the state of the property is based on the examination of the design documentation, “as built,” and visual inspection to detect any anomalies in the Properties being verified.
ADVANTAGES
- Knowledge of the state of the asset, i.e., transparency of the investment
- Analysis of critical issues and peculiarities for thoughtful definition of utilization methods
- Assessment of interventions needed for correct time estimation
- Risk analysis, or reliability of the Investment