The entire due diligence procedure takes a few steps but covered a number of different legal areas, most of which focus on taxation, building safety and other environmental factors along with the market price. We've listed due diligence steps below:
- Legal property due diligence: checks for previous sales agreements along with rent and lease agreements
- Taxation due diligence: profit taxes along with inheritance and other corporate taxes if the buyer is a company in Switzerland
- Construction and Safety: analysis of building plans and codes to obtain an official approval for the building's current state as well as determine any repairs which need to be implemented. On top of that, an inspection of electrical cabling, etc.
- Environmental due diligence: analysing pollution output and risks, determining the state of the piping as well as water supply and electricity use, even if the building is vacant.
- Financial due diligence checks: planning and determine future resale values as well as the current expenses the building or property will require.
By merging all of the steps above together and running through the procedure business owners and investors will be able to gain a rather thorough analysis of the buildings state. All of the due diligence procedures are a means of determining how well the building or property will work for a particular business, as well as whether it will become a profitable asset or a loss-causing one.