Types of real estate due diligence in Singapore
The most important action to take before purchasing a property in Singapore is to perform a thorough real estate due diligence. Foreign citizens and investors are being presented with several options when verifying a property they are about to purchase. Whether they want to verify the property themselves or ask the services of Singapore specialists, there are several types of real estate due diligence procedures available:
- – commercial real estate due diligence,
- – legal real estate due diligence,
- – technical real estate due diligence.
A proper verification of the building about to be purchased implies both legal and technical real estate due diligence to be executed.
Legal real estate due diligence in Singapore
Legal real estate due diligence in Singapore is comprised of two parts:
- – the verification of the property,
- – the verification of the seller.
Foreign companies opening branches or subsidiaries in Singapore for which they’ll require to buy office space should check the following aspects:
- – if the name on the property title corresponds with the name of the seller,
- – to verify the status of the title, if the space is occupied by a tenant or if it is free,
- – to verify if there are any encumbrances on the property.
This information is usually obtained from the Singapore Land Registry.
Technical real estate due diligence in Singapore
When purchasing a property in Singapore, one must make sure the Health and Safety and Environmental regulations are complied with. In order to assert this, technical real estate due diligence is employed. This procedure is usually conducted by architects who will verify the building for potential non-compliance with environmental regulations.
It is a common practice among Singapore companies to order technical real estate due diligence, especially when purchasing industrial buildings in order to ensure the protection of their employees. The Singapore legislation also requires buildings to be maintained and regularly checked for damages.