The process of due diligence in Real Estate transactions in France

What information is included in the data room’s folders as organized by the Notaire?

Data room services authorize auditors to request additional documents or ask questions, for at least a certain period. Here are the main folders included in the data rooms and exactly what they consist of.

1. The “Organization” folder includes mainly a surveyor’s detailed plan of property, a table showing how much floor space is available depending on how it’s used, specifications for the building’s setup and construction, contracts governing the building’s administration, maintenance, and operation.

2. The “Easement” folder includes a memorandum detailing any easement may it be profiting or not the building.

3. The “Deeds” folder contains the purchase deed of the transaction prepared by the notary, along with any prior title deeds changing the chain of ownership going back at least thirty years.

4. The “Mortgage statement” folder contains all the recent mortgage statements (for less than two months), it helps make sure the title deeds have been correctly published at the lang restry service.

5. The “Joint ownership” folder contains a memorandum and articles of organization of the owners’ management business, a description of property and co-ownership rules, and how the division is organized in volumes.

6. The “Tax” folder contains proof of submissions for land tax and documentations of their payment.

7. The “Contaminations” folder includes a description of reports of termite and wood-boriung bug infestations in the region, an investigation of any structures for which the building permit was obtained prior to July 1, 1997, and a certificate of lead exposure hazards, in case of a building with residential space was built before January 1, 1948.

8. The “Environment” folder contains a list of dangers associated to natural disasters, earthquakes, and technology-related risks, data relating to soil pollution, and past ICPE operations.

9.The “Urbanism” folder includes details on public easements, relevant town planning, and a certificate of the applicable regulations.

10. The “litigation” folder contains a list of ongoing legal battles involving the building or its leases.

11. The “Rental situation” folder includes a summary of the rental status, bank guarantees, termination notices, etc.

12. The “Works” folder includes a schedule of maintenance tasks completed in previous years and that are planned for the following ones.

13; The “Insurance” folder includes insurance policies for construction and operations.