Legal support of a transaction is the basis for reliable business. Legal support issues are especially important for land lots and industrial real estate objects. Our Office renders the following services:
- Legal examination of documents;
- Working out of an optimum variant of transaction, consultation on the order of its carrying out;
- Legalization of the property rights for objects and ground areas;
- Preparation and coordination of documents with the state administrative bodies;
- Representation of interests of the client in the state instances.
Due Diligence of the land and objects of the real estate
The land as an object of real estate represents special economic resources, and consequently the transactions with the land require special attention of participants of economic turnover. For transactions with the land at minimum risk Due Diligence is necessary for the ground areas and objects of the real estate. It especially concerns the land and the real estate purchased abroad.
Due Diligence procedure of transactions with the ground areas, as a rule, is carried out in some stages. In the course of those the rights of the seller for the ground area are analyzed, as well as history of the objects which are located there, the rights of the third parties or the seller of the ground area on the specified objects, a chain of acquisitions of the ground area and objects located on it, presence of easement and other encumbrances, the analysis of privatization procedures.
Main objectives of the legal Due Diligence in transactions with the real estate:
First, in the course of Due Diligence it is established whether the object of the real estate can represent itself as a transaction subject from the legal point of view (for example, whether the ground area offered for sale was formed and unique cadastral number was assigned to it, whether a new-built object was put into operation, and also whether there are any encumbrances and restrictions, that can affect on planned operation of object of the real estate).
Secondly, Due Diligence has to confirm, that the persons, offering transaction with the object of the real estate, really have a right to do this.
Thirdly, the purpose of legal Due Diligence consists in risk identification of loss of the rights of object of the active legal owners or the future purchaser.
When carrying out Due Diligence transactions with the ground areas the following aspects should be checked up:
- Right of the seller to deal with the ground area;
- Encumbrances and restrictions as to the ground area, transactions with the ground area;
- Controversies, conflict situations the subject of which is the ground area;
- Necessity of the coordination of the transaction with the third parties, the state bodies;
- Necessity (correctness) of the corporate coordination of the transaction by its parties;
- Correctness of registration of the land management, cadastral and other documentation used in transaction;
- Restrictions and encumbrances of the ground area use as to the purposes of the buyer on its use;
- Purpose of use of the ground area and a category of land, possibilities on change of the purpose of use or category of the ground area in accordance with the intentions of the buyer concerning the use of the ground area.
Based on the results of the analysis in such cases the conclusion is made with all risks shown, if any, as well as ways of their elimination or minimization.
It should be mentioned, that Due Diligence is a compulsory procedure worldwide in the support of transactions with the real estate, including ground areas. Not carrying out ofDue Diligence before transactions with the real estate, including ground areas, often leads to additional expenses, and even to loss of the property right on the object, loss of the invested money.
Support of complicated transactions with the real estate and Due Diligence for the real estate is promoted by the Expert council of our corporation