Legal Risks in Real Estate Transactions

In real estate transactions, a large part of the risk can be managed through review carried out before completion. The headings below are the areas that most frequently cause problems in practice.

Title and Ownership Review

Annotations, attachments, mortgages and easements on the title record directly affect the use and value of the property. A detailed review should be carried out on an up-to-date record extract before the transaction.

Zoning and Construction Status

• Confirmation of the zoning plan and development conditions
• Check of the construction permit and occupancy permit
• Assessment of the risk of unlicensed construction or non-compliance

At the contract stage, the balance between the payment schedule and the transfer of title should be clearly established, and the parties’ security mechanisms clearly defined.