When do you need a Technical Due Diligence Survey?
There are many situations when a technical due diligence survey is required. The most common reason for undertaking a technical due diligence survey is when a client is considering acquiring a building. This type of technical due diligence survey is referred to as a pre acquisition survey. The intention of this kind of technical due diligence survey is to deliver an indication of the property’s condition and any legal issues on behalf of the purchasing party, which will contribute to understanding whether a property is fit for purchase, and any risks that need to be taken into account as part of the acquisition process.
A technical due diligence survey can also be instructed at the time of marketing a building, This kind of technical due diligence survey is called a vendor survey and is drafted on the behalf of the vendor to enable all enquiring parties to get a comprehension of the condition of the property prior to proceeding with the acquisition.
A technical due diligence survey is also frequently completed on behalf of a potential tenant prior agreeing a lease. This kind of technical due diligence survey is referred to as a lease acquisition survey. As with the other kinds of technical due diligence surveys, this kind of technical due diligence survey will also provide commentary on the condition of the property and legal issues, which will have some impact on the occupation of the property.
Any kind of technical due diligence survey should preferably be undertaken as early as reasonably possible in the purchase process as this will allow for as many items raised in the report to be fully considered and provide the purchasing party with a more complete appreciation of the consequences of the purchase and whether any changes need to be made to the offer/lease.
Why do I need a Technical Due Diligence Survey?
A technical due diligence survey offers the appointing party with an all-inclusive summary of a given property, including the condition, any legal matters, environmental concerns, and health and safety matters. The technical due diligence survey enables the individual instructing the survey to grasp the obligations and liability that they are taking on. They can take this into account when purchasing or occupying a building. The technical due diligence survey may lead to the party looking to purchase the property deciding not too or to revise their offer.
