Real Estate Due Diligence = La Due Diligence inmobiliaria

PurposeThe individual levels involved in real estate management are thoroughly discussed in the literature. This paper provides a structured meta-analysis of the different theoretical approaches in German-speaking countries. It also investigates the integration of transaction management and technical due diligence into the concepts of organisation theory. In this process, the interfaces are analysed and optimised models are developed for transferring the technical due diligence findings to the operational level.Design/methodology/approachInterviews with transaction management experts were conducted based on a narrative literature review. These interviews shed light on how the components of transaction management and due diligence are integrated into the transaction process, with a particular focus on technical due diligence. They also provide insights into how the related results are taken into account in relation to the transaction, and how they are transferred into the operational phase.FindingsIt becomes apparent that the role of transaction management is not clearly defined and delimited in the structural model of the real estate industry. Technical due diligence findings are usually transferred to the operation of the property via several, manual interfaces with corresponding losses of knowledge. The related models derived and developed for the purpose of operational optimisation define the role of transaction management against a technical background and identify the interfaces to be considered.Practical implicationsThe significance of transaction management for subsequent operations is discussed and elaborated on. More specifically, transferring safety-relevant, high-priority findings from the technical due diligence exercise plays a crucial role for the modelling stage. On the implementation level, the derived models serve as a basis for customising the internal organisational structure.Originality/valueIn Germany, there has hardly been any research into the involvement of technical experts in the real estate transaction process to date. This paper provides initial approaches to optimising organisational structures and sustainably integrating technical due diligence findings into real estate operations.

Download Full-text

MORTGAGOR’S LIABILITY FOR THE PRESERVATION OF THE VALUE OF A MORTGAGED REAL ESTATE

TEME ◽

10.22190/teme191205009v ◽

2020 ◽

pp. 065

Author(s):

Milica Vučković ◽

Miroslav Lazić

Keyword(s):

Real Estate ◽

Civil Law ◽

Civil Liability ◽

Due Diligence ◽

Legal Standard ◽

Real Risk ◽

The Relationship

In this paper, the authors analyze the civil law liability of a mortgage debtor (mortgagor) in cases where the debtor breaches the obligation of treating the mortgaged real estate in compliance with the legal standard of acting with due diligence of “a good host” or “a good businessman,” and thus depreciates its value to the extent that jeopardizes the possibility of enforcing the claim. Given the accessory nature of mortgage which is aimed at securing the claim as the primary right, this form of civil liability and the corresponding rights of the mortgage creditor (mortgagee) are applicable before raising the issue of traditional civil law liability, which implies the maturity of the receivables and compensation for the damage sustained by the creditor. This form of civil liability may also be used preventively when there is a real risk of causing damage to the mortgagee. The relationship between civil law liability and the insurance of the mortgaged asset implies that they do not exclude but complement each other.

Download Full-text

Real Estate Due Diligence Process in International Real Estate Transactions in Latvia

Baltic Journal of Real Estate Economics and Construction Management ◽

10.1515/bjreecm-2015-0010 ◽

2015 ◽

Vol 3 (1) ◽

pp. 91-102 ◽

Cited By ~ 1

Author(s):

Janis Viesturs ◽

Armands Auziņš

Keyword(s):

Risk Factors ◽

Real Estate ◽

Due Diligence ◽

Legal Systems ◽

The Real ◽

The Real Estate ◽

Limited Availability ◽

Number Of Individuals

Abstract International real estate transactions, especially in countries with different legal systems, are characterised by the fact that each transaction is unique in its complexity, confidentiality, different risk factors, and the limited availability of information regarding the real estate. The Due Diligence (DD) process is an instrument that can help avoid or at least reduce risks and assist in making important decisions regarding real estate transactions. The term “Due Diligence” has a number of different meanings. The aim of this paper is to determine the etymology of this term and to identify its most common contemporary meaning. Each DD process is to be recognised as a project requiring management because of the potentially high number of individuals that could be involved.

Download Full-text