Real Estate Due Diligence in India
Updated on Thursday 17th May 2018
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What does real estate due diligence represent?
Real estate due diligence refers to set of procedures that are concluded when purchasing a property in India or elsewhere. As a general rule, it implies that the buyer will conduct all the relevant procedures to discover if the respective property is sold in good faith. Real estate due diligence refers to both the sale of residential or commercial properties, which can be bought by investors who want to open a company in India, and it refers to the inspection of the property or its documents. Our team of specialists in company formation in India can advise on the main real estate due diligence procedures that can be conducted here.
What is the current situation of the real estate market in India?
The real estate sector in India is a growing industry, having one of the highest expansion rates amongst the Indian industries. Investors who are interested in company formation in India must also know that this market experienced a rapid development for the leasing and renting of commercial office space. Prior to renting or purchasing a property in this country it is advisable to receive professional assistance and our team of specialists in company registration in India can perform the due diligence procedures, as they are familiar with the local legislation.
What are the main due diligence aspects in India?
As the main purpose of the real estate due diligence in India is to gather all the relevant data on a property, special procedures should be completed. As a general rule, real estate due diligence will gather the steps mentioned below:
- a team of specialists - such as architects, will perform inspections, to discover any hidden flaws of the respective property;
- the property’s documents will be closely verified to find out if there are any issues regarding its ownership;
- the specialists will estimate the risks associated with buying or renting the real estate property;
- the title of property, which is the basis of any property transaction, will be analyzed to discover if it is outside the scope of the Indian Contract Act and the Transfer of Property Act.
What are the rules of law regulating the real estate due diligence in India?
Besides the above mentioned rules of law, real estate due diligence procedures can also fall under the regulations of the Registration Act, the Indian Stamp Act and the Indian Easements Act, which can be detailed by our team of representatives in company formation in India.