The real estate due diligence is performed in France when a buyer wants to check various aspects regarding a building before making a real estate purchase. Commercial property due diligence is an important step because it concerns a long time investment.
It is advisable to work with French professionals whenever making a real estate transaction, in order to obtain the best property, suited to your specific needs. Our attorneys in France
can handle real estate due diligence
for any types of commercial real estate in France.
The real estate due diligence process in France
A due diligence verification for commercial or industrial real estate depends on the needs of the buyer and the objective of the purchase. Depending on the type of buyer, a real estate due diligence will have slightly different objectives:
- for a lender, the due diligence is focused on the ability to repay the loan for the purchase;
- for a strategic buyer, the property is purchased for personal use and the property needs to meet specific criteria;
- a financial buyer will want to purchase a property that will generate profits in time and a proper investigation will determine the amount and durability of the future income.
Developers in France have different objectives and may want to purchase properties that can later be changed according to the demand on the market. A complete and professional due diligence process will consider all of these aspects and many more.
Our French lawyers
can advise you regarding the best properties on the market, if you want to open a business in France
and need to set up a main place of business.
Real estate due diligence checklist in France
A real estate due diligence process needs to include not only information about the condition of the building, but also about its financial situation (mortgages, financial statements, etc.) and other miscellaneous information.
Technical due diligence deals with the physical characteristics of the property:
- materials used for construction,
- building plans,
- seismic risk assessment,
- mechanical system reports about equipment and facilities within the building (elevators, ventilation, air conditioning, etc.).
An environmental due diligence can also be performed and it includes soils test, tests for different substances or mould.