Business Advisory: Asset Due Diligence

Identification of property for commercial/residential/well-being activity

Identification of property for commercial / residential / well being
- Identification of property category based on location, zoning and legal documentation
- Classify property based on key identification factors:
  - Commercial
    - Office spaces, Industrial sites, specialized units (medical centers, hotels)
    - High-Foot traffic locality
    - Proximity to central business districts
    - Proximity to transport hubs
  - Residential
    - Proximity to schools, parks and hospitals
    - Construction quality
    - Low crime rates and secure neighborhoods
  - Well-Being
    - Construction design based on integration of nature, high air quality, natural light and access to exercise or quiet spaces
    - Residential complexes with green certifications, wellness-focused spaces and health-centric hospitality
    - LEED or well certification status, which indicates high-quality indoor environments and sustainability

Verification of property documents

Key documents required:

Title / Sale Deed:
Proves ownership including owner details, property description and boundary information
Encumbrance Certificate:
Confirms the property is free from legal liabilities or mortgages for at-least 13-30 years
Index II / Property Card:
Issued the registrar, containing details on property area, address and ownership
Approved Building Plans / MAP:
Shows the approved layout and structure from local municipal authorities
Occupancy Certificate (OC):
Confirms the building complies with safety rules and is safe for occupation
Property Tax Receipts / Utility Bill:
Validates ownership and shows tax compliance
7 / 12 Extract / 8-A:
Specifically for agricultural land, detailing ownership and land usage

Legal Liaison

To be a reliable and efficient conduit for real estate developers, legal terms and government departments for due-diligence and to assist in the applications of compliance and conformity certificates which have complex regulatory procedures.

Parameters for legal liaison
- Property Verification
  - Investigate property history
  - Verifying chain of title
  - Checks for encumbrances
  - Issuance of title clearance certificates
- Co-ordination with:
  - Local municipal bodies
  - Town planning authorities
  - Revenue offices
    (To secure building plan sanctions, layout approvals and Non-Agricultural (NA) orders)
- Compliance and Conformity
  - Keeping abreast of regulations and updated policies, while aligning with support services related to the RERA Act, local zoning laws and environmental regulations.
- Drafting and Review of documents
  - Aid in review and draft of the following:
    - Financial transaction documents
    - Sale deeds
    - Joint Development Agreements
    - Lease deeds
    - MOU’s

Field Verification for Property

To be a reliable conduit for asset / property due-diligence

Review of property documents and site inspection to identify:
- Un-authorized construction
- Boundary disputes
- Zoning violations
- Un-registered sale of property
- Hypothecation of property
Line of demarcation
- Perform field intervention to inspect properties / plot’s boundary, intersecting roads and areas of encroachments by neighboring plot owners.
- Liaise with authorized surveyor to verify dimensions (Hectare-Are-Square Meters) of the property / plot / open land with dimensions mentioned in the land revenue records and government survey records
Usage and Zoning Checks
- Identify the property’s zoning category and ascertain whether they match the approved zone parameters
Utility and Maintenance
- Identify the condition of utility meters (electricity/water) to determine if there are unpaid penalties or illegal connections
- Check receipts to verify whether there are any arrears in municipal property taxes and other co-operative society maintenance charges
Collation of documents
- Perform physical verification of property owners' identity documents
- Verify original chain-of-title documents, year of construction and ownership history through digital search and field visits to municipal departments