What due diligence is
It is the process of collecting, reviewing and interpreting the legal information that affects a proposed acquisition: title and ownership, liens and annotations, cadastral information, access, contracts, municipal matters, land use, taxes, condominium obligations and other property specific risk.
It ends in advice, not a folder. The question is not whether the documents exist, but whether the purchase should proceed, on what conditions, and with which protections.
Can foreigners buy?
Generally yes, for titled property. The qualification matters more than the headline: not every property interest is ordinary titled property. Coastal concessions, possession rights, corporate ownership and properties inside regulated areas need specific review before a buyer relies on the general rule.
Does the land use category settle it?
No. A land use certificate identifies permitted and restricted activities, setbacks, lot size, coverage, density, height and related parameters for a specific parcel in a specific municipality. It is one input.
Water availability, legal access, environmental restrictions, watercourses, forest limitations, coastal rules, utility capacity, slope and soil conditions can each reduce the practical development area well below what the category suggests.
Structures, condominiums and taxes
Where a structure is part of the value, the municipal and permitting record needs reading, and an inspection may be warranted. For units and gated developments, bylaws, restrictions, fees, governance records and arrears belong in the review.
Property tax, municipal charges, condominium fees and other local obligations should be clear before closing, not discovered at the municipality afterwards.
Direct purchase or shares
Buying the asset and buying the company that holds the asset are different transactions with different liability, tax and diligence consequences. The choice belongs to the strategy conversation, before the offer, not after.
This note expands material originally published by Simple Legal Consulting.
Read the original article