Legal & Financial Due Diligence
Real Estate Investments
Overview
After identifying a suitable investment property through market analysis or within our existing projects, the next phase focuses on validating the investment from both a legal and financial perspective.
Our due diligence processes for the Brazilian market forms a critical part of the overall investment process and allows an investment to be done safely and securely.
We assess the legal ownership status of the property, zoning restrictions, condominium rights and obligations, outstanding liabilities, and potential risks associated with the acquisition.
Service Offering
Legal Due Diligence
The legal structure of real estate in Brazil is closely tied to local regulations, zoning rules (zoneamento urbano), and specific restrictions regarding use and (foreign) ownership.
We analyze the legal status of the property, including usage rights, permitted purposes, any restrictions for foreign buyers, and obligations within a condominium (condomínio). This ensures that the property is legally suitable for its intended use and operation.
Liabilities and Debt Verification
In Brazil, certain financial obligations can be directly linked to the property and, in some cases, may transfer to the new owner. A thorough review of these liabilities is therefore essential.
We verify outstanding obligations such as municipal taxes (IPTU), condominium fees, utility charges, and any legal claims or liens. This helps prevent unexpected costs after acquisition and ensures the property is free of financial encumbrances.
Property Documentation & Conformity
The physical characteristics and actual use of a property must fully correspond with its registered and permitted status. Any discrepancies between the physical reality and official documentation may lead to legal and operational risks.
We review all relevant documentation, including permits, architectural plans, and official records from the relevant authorities. We verify whether the property has been developed and is being used in accordance with applicable regulations, and identify any inconsistencies or irregularities.
Risk Assessment and Advisory
All findings from the due diligence process are consolidated into an integrated assessment of the intended investment.
Our advisory includes an analysis of identified risks and their potential impact on operations and returns. Where a market and rental analysis has been conducted, risks and potential benefits can be assessed in conjunction. This forms the basis of our investment advice, enabling well-informed decision-making prior to acquisition.