FRELA supports businesses and professionals in corporate real estate law by providing legal due diligence for the property to be purchased or sold
Are you planning to acquire or sell a commercial property? FRELA conducts a legal audit of the property to be acquired or sold.
For your complex and high-value transactions, especially in the context of acquisitions and sales of commercial properties, FRELA’s appointed lawyers can accompany you to optimize and secure your real estate sales in France.
First, we will listen to you to understand your project and needs. With this information, we will proceed with the legal audit of your property based on your specific requirements and interests.
Why do you need an audit for acquisitions and sales of commercial properties?
During business and real estate transactions in France, it is important to conduct an audit to ensure a smooth process. The audit helps identify and anticipate potential legal issues that may arise during the sale, such as disputes over property titles or problems with the property itself. Therefore, it is essential to conduct an audit before proceeding with any real estate sale in France.
In France, an audit is necessary for all acquisitions or sales of commercial properties.
In France, it is recommended to conduct an audit for all acquisitions and sales of commercial properties. The audit provides various assurances regarding the proper conduct and compliance of the real estate sales process. The objective of the audit is to verify the documentation of a property, highlight any anomalies or non-compliance with the law and regulations, and provide an objective opinion. The audit is also responsible for collecting all necessary documents for the smooth progress of the transaction, such as urban planning certificates and property titles. When the appointed lawyer conducts the audit, they may also perform additional checks, such as verifying the information provided by the buyer.
The objective of the audit
The legal audit is a crucial step to ensure that the transaction is carried out in accordance with the rules and regulations. It also ensures that the buyer is aware of all the risks associated with the purchase of the commercial property, especially in cases of ownership issues such as liens or encumbrances.
Preparation of the audit report
The audit report is typically prepared in a concise manner. It includes descriptive information and clauses, such as the description of the properties considered, the origin of ownership, and identified legal and tax risks. The audit may also include recommendations for any necessary prior regularization and a potential timeline for the transaction process.
In general, the audit focuses on researching the historical records of the property. To establish an indisputable property title, the consecutive transfers of the property must be traced back over an uninterrupted period of 30 years, with each seller in the chain of titles having obtained a valid title from the previous seller.
During this research, it is important to verify that the seller is the true owner of the property and can provide a clear title to the buyer.
Moreover, the law requires the seller to provide the buyer with environmental and technical information. The absence of such information may lead to the cancellation of the sale.
Our methodology for legal audit to guide you in your assessments of commercial real estate transactions.
We accompany you in implementing a legal audit for your mergers, acquisitions, and sales of commercial real estate. Firstly, we will create a list of strengths and weaknesses identified through the internal and external analysis of the properties.
- Analysis of legal issues in the file
- Verification of preemption rights
- Clearance of appeal periods
- Environmental situation analysis and soil pollution
- Verification of building permits
- Local regulations
- Ongoing commercial lease agreements
- Pre-application declarations
Contact us and present your project for the acquisition or divestment of real estate or businesses.