Legal Services comprised by our Due Dilligence Procedure
Below are the services comprised by our Due Dilligence Procedure.
Sergio Castro legal department
1 – Drafting the Option to Buy The Property (If Applicable)
2 – Drafting the Downpayment Contract (If Applicable)
3 – Obtaining Certificates at the Notaries of Civil Suits (First, Second, Third and Fourth Distribution Notaries) , to check each and all civil suits that may exist involving the Seller Company and each of its partners and their spouses, if a Limited Liability Company. Each legal suit which exists will be examined thoroughly “in loco” so that we can check if they represent any risk, and if they do, if possible, we will draft contracts on which the parties which represent risk will present guarantees to such risks.
4 – Obtaining Certificates at the Labour Courts, to check each and all Labor suits that may exist involving the Seller. Each legal suit which exists will be copied and examined thoroughly so that we can check if they represent any risk, and if they do, if possible, we will draft contracts on which the parties which represent risk will present guarantees to such risks or be obliged by contract to pay the debt.
5 – Obtaining Certificates of the Tax Courts (Twelveth Distribution Notaries), to check each and all Tax-related suits that may exist involving the Seller Company and the Property.
6 – Obtaining Certificates of the Debt Notary (Seventh Distribution Notary), to check for debts that the company may have that ARE NOT YET being challenged at the Civil Court. Each debt will be checked.
7 – Obtaining Certificates of the Documents Registration Notary (Eigth Distribution Notary) to check for the obligations and contracts which the Seller Company or its Partners may be part of that could represent a liability to the purchase. Each obligation will have to be examined.
8 – Obtaining Certificates of Federal Courts, to check for Federal Legal Suits against the Seller. Those could include Federal Expropriation, Serious Tax debts, and other legal suits which will have to be examined, one by one, if they exist.
9 – Obtaining Certificates to find out about the Property Tax Situation and Fire Tax. Do they pay? Do they owe? How much?
10 – Obtaining Certificates of the Company that are Welfare Related. Have they been paying their Welfare Taxes (FGTS, INSS)? We have to find out. If they are not paying, we must have them discount their debts from the price of the sale, because since this company only has this asset, if they sell, they may take the money and never pay such debts. (NOT APPLICABLE IN CASE SELLER IS NOT A COMPANY)
11 – Checking at the Fire Department for the License of the Building.
(NOT APPLICABLE FOR UNITS OF A BUILDING, JUST FOR WHOLE BUILDING)
12 – Obtaining Certificates from the DEEDS DISTRIBUTION NOTARY (5th and 6th Distributing Notaries) (A property may have been sold in the past, and the former buyer never registered it, so we will never know until we research ALL DEEDS ever signed by the Seller Company on the last 25 years, property could be being sold for te second time by same person).
13 – Checking the Real Estate Registry to see if there are any attachments to the property (that is, has the property been given in mortgage, or any kind of guaranty?).
14 – Drafting the Definitive Purchase Deed, Processing the Property Acquisition Tax, and deed will be signed before a notary, in a way only the lowest risks, if any, are involved.
Maximum time needed for all this is 45 days