Planning and Licensing Due Diligence Before Purchasing Property

Purchasing a property is one of the most important and expensive transactions a person or investor makes. But beyond the usual checks of price, financing, location and registration, there is another critical layer: the planning and licensing examination of the property.

A property that appears to be completely right externally may turn out to be one that includes building irregularities, illegal use, additions that have not been granted a permit, a contradiction between the built-in situation and the licensing documents, or planning limitations that affect its value and the possibility of using it, selling it or funding it.

Why a Planning Check is Important Before Purchasing

Many purchasers rely on the seller's statements, appearance, or partial documents. In practice, only a planning and licensing inspection can show whether the property is built in accordance with the permit, whether there are exceptions, whether the designation matches the actual use, and whether there are planning or enforcement procedures that may affect it.

What to look for before buying a property

• Compatibility between the actual built situation and the approved permit and plans.
• Existence of building irregularities or nonconforming uses.
• Are there warrants, enforcement procedures or requirements from the local authority?
• What the program started and whether there are limitations or planning opportunities.

Building and property acquisition irregularities

One of the common problems is the purchase of a property with existing building exceptions. In such cases, the purchaser may discover after the transaction that the property does not match the permit, that it is impossible to get a full mortgage, or that the authority requires the series, fines or even demolition. Therefore, identification of pre-existing irregularities is critical.

Nonconforming Use and Licensing Disabilities

Even when the structure itself is legal, the actual use of it may not be consistent with the planning purpose. For example, a residential property used for business, an unregulated accommodation unit, or commercial space used differently than is permitted. Such situations can create a real risk to the purchaser.

Pre-purchase inspection as a basis for negotiations

An early inspection is not only intended to prevent errors, but also to serve as a commercial tool. When a planning or licensing defect is discovered, the price can sometimes be reduced, the series is required as a condition of a transaction, to anchor indemnification mechanisms or even to give up the purchase before damage is caused.

For whom the service is suitable

• Apartment purchasers, private homes and commercial properties.
• Real estate investors who request a risk check before a deal.
• Land purchasers or properties with planning potential.
• Buyers who wish to verify a complete match between the documents and the actual situation.

Frequently Asked Questions

Should I check the rest before buying an apartment?

Yes. It is important to check that the built-up situation matches the permit and the approved documents.

What happens if building irregularities are discovered

It is necessary to examine whether it is possible to regulate, whether it is right to reduce the price, or whether it is better to avoid the deal.

Is a planning examination also relevant to a commercial property

Of course, sometimes in commercial properties, actual use exceeds the designation or the permit.

When should the test be done?

prior to binding signature, or at least as early as possible during the negotiations.