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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