Due diligence in real estate

Due diligence applied to capital investment, as well as commercial and industrial properties, is now fully
established in Switzerland.

Investor due diligence

As a rule, investor due diligence comprises:

  • a decision-making basis for real estate transactions
  • systematic real estate assessment prior to purchase
  • establishing a purchase price
  • identification of risks and opportunities
  • determining transaction conditions
    • customary warranty waivers require due diligence (see Real estate purchase, Warranty)
    • risk associated with site contamination born by buyer
  • determining whether parties to the contract negotiations are in positions of strength or weakness.

To be checked:

  1. Market due diligence
  2. Legal due diligence
  3. Tax due diligence
  4. Technical due diligence
  5. Environmental due diligence
  6. Financial due diligence

Summary

Schematic of real estate due diligence:

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