Introduction to Due Diligence
All overseas property agents must now perform their own due diligence process before marketing their properties for sale. This is especially important when it comes to new buildings and urbanisations.
So what is due diligence and what does it have to do with property?
Due diligence is a process where an agent investigates a property or new development to ensure that everything promised during marketing is actually delivered upon sale. Every aspect of the property must be analysed during this process.
It is the agents' responsibility to ensure everything is legal and above board with the property, but how is this accomplished?
The best approach is to hire specially trained lawyers who will look into all of the following property aspects:
- Who owns the project, land and/or property?
- That the sellers are the owners and are free to sell.
- All necessary planning permissions have been granted and followed adequately.
- The property has no outstanding debt.
- There are no outstanding planning issues.
- Bank financing has been secured.
- There are no unusual conditions with the sale.
- Contracts are presented in English as well as Portuguese.
- Developers insurance has been secured for a new build.
- 10-year structural insurance has been secured.
We never begin marketing the property until we are satisfied that all of the above have been taken care of satisfactorily and we are happy with the overall concept and securities put in place.
For any well-seasoned agent, performing this type of detailed due diligence should be standard working procedure, but unfortunately many fail. The press is filled with horror stories that simply shouldn't occur.
It is highly recommended that you hire a lawyer familiar with the conveyancing procedure and who can ensure every aspect of the deal is done in your favour. Furthermore, it is recommended that you use a bi-lingual lawyer who speaks Portuguese fluently and who has ample experience in this process.
Through our due diligence checks and our guarantee, we hope to ensure your investment in Portugal will be enjoyable, speedy and hassle-free. We hope you will end up extremely profitable as well!
For more information please write to us on firstname.lastname@example.org or feel free to call us on 0800 014 8201 and a member of the team will be happy to answer any of your questions.
We look forward to helping you find your dream Portugal Property!