{"id":14626,"date":"2026-06-29T15:47:38","date_gmt":"2026-06-29T15:47:38","guid":{"rendered":"https:\/\/www.gbu.kyiv.ua\/?p=14626"},"modified":"2026-06-29T15:47:38","modified_gmt":"2026-06-29T15:47:38","slug":"due-diligence-budivel-pered-prydbannyam-u-korporatyvnu-vlasnist","status":"publish","type":"post","link":"https:\/\/www.gbu.kyiv.ua\/en\/due-diligence-budivel-pered-prydbannyam-u-korporatyvnu-vlasnist\/","title":{"rendered":"Due Diligence of Buildings Before Acquisition into Corporate Ownership"},"content":{"rendered":"

Due Diligence of Buildings Before Acquisition into Corporate Ownership<\/span><\/h2>\r\n

Acquiring a building into corporate ownership is not just a sale and purchase transaction, but a strategic decision that affects the company’s balance sheet, reputation, and future profits. For a corporate buyer, every real estate object must be not only legally clean but also technically suitable for implementing a business project. Due Diligence of buildings before acquisition into corporate ownership is not just a document check, but a large-scale analytical process that allows for assessing all risks and making a sound investment decision. Given the Ukrainian market conditions, where a significant portion of assets has a complex title history or technical defects, such a check is critically important.<\/span><\/p>\r\n

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What is Due Diligence of Buildings for Corporate Ownership<\/span><\/h2>\r\n

Due Diligence is a comprehensive legal and technical audit of a real estate asset, which allows for identifying potential risks for the buyer, avoiding fraud, identifying hidden defects, and ensuring the legal integrity of the transaction. For a corporate client, this process takes on special significance, as it involves large investments and complex ownership structures.<\/span> The purpose of Due Diligence is to identify legal risks before entering into a transaction for purchase and sale, leasing, investing in, or financing construction. This process is particularly important for developers planning to invest in a plot or an object for reconstruction; investors in residential or commercial real estate; and banks and creditors financing construction projects.<\/span><\/p>\r\n

Key Blocks of Due Diligence for a Corporate Buyer<\/span><\/h2>\r\n

The Due Diligence process for a corporate buyer includes two independent areas of work \u2014 legal and engineering \u2014 which are carried out in parallel and consolidated into a single comprehensive report:<\/span><\/p>\r\n

Block A \u2014 Complete Legal Verification of the Asset<\/span><\/h3>\r\n
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  1. Verification of ownership rights \u2014 the legality of origin and all title transfers, analysis of title documents and their compliance with registry data.<\/span><\/li>\r\n
  2. Identification of encumbrances \u2014 checking for liens, mortgages, and prohibitions on alienation.<\/span><\/li>\r\n
  3. Analysis of litigation \u2014 checking information in the Unified State Register of Court Decisions, the register of debtors, and open enforcement proceedings.<\/span><\/li>\r\n
  4. Risks of asset repossession \u2014 assessment of the possibility of title challenges by former owners, heirs, creditors, or the prosecutor’s office.<\/span><\/li>\r\n
  5. Analysis of urban planning and permitting documentation \u2014 checking development and usage restrictions in planning documents (General Plan, DPT, MUO), construction work permits, and compliance with State Building Codes (DBN).<\/span><\/li>\r\n<\/ol>\r\n

    Block B \u2014 Engineering Inspection of the Asset<\/span><\/h3>\r\n
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    1. Assessment of technical condition \u2014 analysis of the foundation, walls, floor slabs, detection of cracks and deformations.<\/span><\/li>\r\n
    2. Detection of hidden defects \u2014 use of instrumental methods to identify problems not visible to the naked eye.<\/span><\/li>\r\n
    3. Assessment of compliance with design documentation \u2014 verification of the BTI technical passport and design documentation.<\/span><\/li>\r\n
    4. Diagnostics of engineering systems \u2014 check of power supply, water supply, sewage, heating, and ventilation systems.<\/span><\/li>\r\n
    5. Identification of unauthorized construction \u2014 check for illegal redevelopments, additions, or reconstructions.<\/span><\/li>\r\n<\/ol>\r\n

      Risks Identified by Due Diligence for a Corporate Buyer<\/span><\/h2>\r\n

      Without professional Due Diligence, a corporate buyer risks encountering a number of critical problems:<\/span><\/p>\r\n