If a disruptive factor, i.e. an insurmountable obstacle to the transaction, has not become visible before, the interested party receives a due diligence report based on the result of the examination, which shows the risks and the corresponding solutions. The results of the real estate due diligence form the basis for the drafting and negotiation of the contract. Their results are included in the indemnification and guarantee clauses. It is also possible that the recommendation is that the maturity date of the purchase price should always be from the occurrence of certain conditions precedent (such as entering into leases with principal tenants; Obtaining the building permit). Access to real estate know-how from all departments of the BDO Nomoko platform provides detailed location data for each property. Due diligence is an extremely complex and very important measure in the context of a real estate acquisition, especially for large real estate projects. It can be understood as an accurate analysis of the strengths-weaknesses of the property, in which potential risks are determined in addition to the value of an object. If due diligence reveals shortcomings, the purchase price can be renegotiated and adjusted. If the defects are too severe, it can even cause the investor to refrain from buying altogether. As a commercial and real estate law firm, we advise our clients nationwide on commercial real estate transactions in legal and tax matters. A key decision is whether a property is acquired directly or whether shares of the company holding the property are acquired. It is obvious that the audit effort for a share purchase will be significantly higher, as the potential buyer must also examine the company itself for risks (so-called company due diligence).

On the other hand, there is tax leeway in the acquisition of a real estate company instead of the acquisition of its only asset. On the other hand, there are risks due to increasingly stringent tax regulations and, of course, the theoretically unlimited liability risks to which the buyer exposes himself by acquiring a company. The purchase of real estate per share must therefore be well considered. From the floor to the potential living space, Nomoko Platform shows the potential of a property for real estate developers. Nomoko Platform uses digital twin technology to transform the way investors and buyers work when buying real estate. Traditional analog processes are finally being digitized and redesigned, speeding up many aspects of market due diligence and making it accessible to more businesses. In order to ensure the most accurate technical due diligence possible, property inspections are carried out by specialists such as architects and civil engineers. In this way, any shortcomings can be identified on the spot and it is possible to clarify the measures needed to remedy them. Due diligence checks are specifically used to look for so-called breaches of agreement, i.e. the facts that cause the auditor to advise against purchasing the subject matter of the contract. A disruptive factor would be, for example, the presence of contaminated sites when purchasing land. The risks thus identified can either lead to price decreases or even to the end of negotiations.

The commercial real estate buyer usually performs due diligence from a certain investment amount. Depending on the type of land (e.g. with office space built on brownfield sites) and the acquisition structure (asset transaction or stock transaction), due diligence can become more or less complex. Innovation and Design Building, Boston, Massachusetts Here, lawyers are hired to examine the property for legal risks. This starts with the review of the current status of the land registry and extends to the review of the lease law of existing leases; existing warranty claims against construction contracts and public construction law issues (e.g. does the existing building permit also cover the intended use?). As a result, the marketability and economic profitability of a property can be quickly assessed and easily understood with regard to its attractiveness, development and yield potential as well as its legal status. In addition to detailed spatial data on each plot and the buildings within it, Nomoko Platform also displays the development potential of a property. This includes the ability to add more floors to the building, the potential gross floor area and, therefore, the potential usable living space. As the name suggests, cadastral due diligence uses cadastral research, cadastral maps, and graphical representations to verify the cadastral values of a property, showing its use, scope, value, and ownership. Due diligence is the examination of ownership for risks. There are several sub-areas to consider.

Market due diligence analyzes the real estate market as a whole, including the location and value of the property, its relative market value, and its overall market development. Below, we take a closer look at market due diligence and how Nomoko Platform simplifies and accelerates this important part of every real estate transaction and reduces costs. This ranges from general information such as property number and EGRID to zoning, status of building and use regulations, possible building permits, and a review of company and land records. This helps determine whether the property presents a risk, complies with regulations or has hidden potential. Start of tax relationships (typically three years) Market due diligence focuses on the buying side of a real estate transaction. For buyers and investors, it provides the kind of information they can use to determine if a purchase is feasible – especially from a business perspective (although it can be just as valuable for private buyers). Risk assessment and analysis (qualitative and quantitative) Technical due diligence consists of determining the technical condition of the property safely and in detail and identifying risks that may arise from construction or fire protection, for example. All technically relevant information and documents are checked, such as approval documents, service and test protocols as well as energy certificates and documents on maintenance measures. In addition, the technical equipment of the building is evaluated, the need for repair of the property is determined, the potentials for modernization are surveyed and the capabilities of use by possible third parties are examined.

Due diligence begins with the sending of a due diligence questionnaire.