Real estate due diligence in Ireland is a common practice recommended to those interested in buying properties in Ireland.
The due diligence process represents a detailed analysis of a property a client wishes to buy.
The analysis is performed by a lawyer, in order to determine if the legal status of the property won’t represent a liability for his or her client.
As Ireland has become a very good market for foreign investors, commercial real estate due diligence also became a popular practice.
If you are interested in buying a real estate property here, for commercial or residential purposes, our lawyers in Ireland can help you throughout the process, concluding whether the property you are interested in presents certain risks.
Our team offers legal services to companies, individuals and investors who wish to set up a company in Ireland.
The services offered by our real estate lawyers are briefly described in this article.
Due Diligence Carried Out by our Irish Lawyers
When buying real estate in Ireland, our Irish lawyers will carry out an investigation on the documents of the property, but also on legal aspects regarding the seller and the property he or she is selling, such as:
- verifying the documents;
- finding out if the seller is undergoing bankruptcy procedures;
- verifying the documents registered at the Sheriff’s Office;
- checking if the seller is involved in any litigation with the Irish Courts.
An audit is performed on the structure of the property and, if necessary, an environmental report, undertaken by an environmental consultant.
The experts at our Irish law firm can verify if the property represents a good investment, will also have to check if there are mortgages on the house and unpaid bills.
You can find a detailed checklist below, with items commonly verified during a real estate due diligence process.
We can help valuate a property after divorce in Ireland, if you plan on selling the joint-owned home.
You can watch the video below for more information about real estate due diligence in Ireland:
Due diligence verification in Ireland
The due diligence process is a comprehensive verification of the existing information about the property before finalizing the purchase.
It is not only an investigation of the documents associated with the property, as well as its status, but also an inspection of its physical condition.
Due diligence is the step that allows the buyer to evaluate the risks, uncover any misinformation (if any) and make an informed decision.
The following information is typically offered at the end of the real estate due diligence in Ireland:
- Property registration: our lawyers check if the registration of the property transaction is registered with the Property Registration Authority; we also perform a Land Registry search and can obtain a Certified Copy Folio;
- Legal: our lawyers will verify if the property is the subject of litigation or of it has been so in the past; we can also review the insurance policies in force and obtain an insurance quote;
- Financial: review utility bills to determine the expenditure, as well as if there any undue debts;
- Others: past or present tenancy agreements, building warranties and guarantees, compliance with the environmental protection provisions, mechanical and electrical compliance as well as a confirmation of the property’s square footage (these are all performed with the help of certified experts).
The information included in the real estate due diligence report will depend on the type of property, how long it has been in use for, or whether or not it is a historical building or a new construction.
Our lawyers in Ireland will be able to offer you more information about the process once you reach out to us for an initial evaluation.
The real estate sector in Ireland
The Irish commercial property sector continues to remain a strong one, despite the turmoil in recent years and the inflation.
Sustainability and affordability are believed to remain key elements that will be important for investors for the foreseeable future.
It is expected that investor interest will remain strong on secondary cities throughout the country.
According to Global Property Guide, residential property prices have grown in Dublin and are expected to continue to do so:
- Overall growth: residential property prices have risen throughout the country, to their highest level since the lowest post-crash points, in the first quarter of 2013;
- Dublin city centre prices: the average asking price rose by 7.7% in 2020, on a year-on-year basis according to a major property website;
- Cork city prices: in the second largest city in the country, the average asking price rose by 5.8% in 2020;
- Homebuilding: has been heavily influenced by the 2020 pandemic, with the completion of dwelling falling by 2.8% in 2020 (due to the imposed restrictions);
- Demand drop: also in 2020, the demand for property purchase has fallen, partly because of the overall global situation, as well as the limited available supply;
- Other effects: the mortgage market has reduced in 2020, a cause for this being the fact that the central bank imposed new laws on mortgage lending in 2015.
Our lawyers can give you more details about the loan to value limits for main dwelling houses in Ireland.
If you are interested in how the property is divided between the spouses after divorce in Ireland, our team is here to answer your questions.
Due diligence is an essential phase in almost al property purchases, both for individuals and corporate investors.
The key documents, the records and the financial information are all obtained following a proper research by our experts and are evaluated accordingly, with the help of relevant specialists such as structural engineers, constructors, or architects.
If you are interested in purchasing a real estate property in Ireland, please contact our lawyers in Ireland, who can give you proper advice on this matter.
Our law firm can provide real estate due diligence procedures as well as other legal procedures related to the purchase of a property.
We also assist entrepreneurs who wish to register a trademark in Ireland.