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 urbanizations.
So, what is Due Diligence? Further, what does it have to do with PortugalProperty?
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 analyzed during this process.
It is the agents responsibility to ensure everything is legal and on 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?
- 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 secure.
We never begin marketing 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 conveyance procedure and who can ensure every aspect of the deal is done in your favor. Further it is recommended that you go with a bi-lingual lawyer who speaks Portuguese fluently and who has ample experience in this process.
PortugalProperty works with a number of top notch, experienced independent Portuguese lawyers. We would be more than happy to recommend one to you!
Through our PortugalProperty Due Diligence checks and the PortugalProperty Guarantee, we hope to ensure your investment in Portugal will be enjoyable, hassle free and smooth. We hope you will end up extremely profitable as well!
We look forward to helping you find your dream Portugal Property!