In general terms, the Due Diligence is the comprehensive investigation of a property and/or a corporation which is(are) involved in a real estate transaction. Now, taking into account that DD is a risk management process for vendors and purchasers, the major areas of professional advice include, but not limit to, the following services:
a.- Verification of the parties legal capacity
b.- Verification of the property’s title, liens, annotations, encumbrances, limitations and easements.
c.- Verification of local and national taxes that may affect the assets involved in the negotiation.
d.- Verification of cadastral plats in relation with the property’s registered information and description (in the National Register’s Property Section).
e.- Verification of municipal permits (seals) that may required to proceed with a property’s segregation.
f.- Assessment and recommendations in closing’s structures (personal, corporate or fiduciary sales or purchases)
¿What services ARE NOT included in the Due Diligence?:
There are “non-legal” aspects that are not included in our due diligence, but whose analysis is highly recommendable for our clients. Although we do not provide these services -and this due to the fact that we ARE NOT EXPERTS in these areas – we can refer you to other professionals that will address these matters.
In general, the following services ARE NOT included in our Due Diligence:
a.- “On site” verification of the property’s areas, boundaries and localization. This is a very important service that must be provided by an Engineer in Topography and must include at least the following areas:
a.1.- Registered area (as per indicated in the National Register’s Property Section) and the property’s real area.
a.2.- Verification of existing boundaries, fences and other divisions.
a.3.- Verification, in conjuction with the property´s neighbors, of the physical and registered boundaries.
a.4.- Verification of the development and/or constructive possibilities in accordance with the Master Plan (when available) that has been approved for a certain municipal jurisdiction.
a.5 Verification of the development and/or constructive possibilities in accordance with the urban development and planning laws for certain municipal jurisdiction.
b.- Verification of a building’s constructive quality and specifications (this should be supervised by a Civil Engineer and/or an Architect).
c.- Verification of a company’s and/or a person’s financial statements (this should be done by a certified accountant).
d.- Verification of a company’s and/or a person’s good standing before the costarican tax authority, DGTD. (This should be done by a certified accountant).
