Supporting the transactions for the sale and purchase of commercial real estate complexes

Background

Identification of all potential risks that could arise in the transaction of the purchase and sale of the property complex

The case

CG experts received the title certification documents to all the facilities of the commercial real estate complex from the customer, as well as the necessary documents from the relevant institutions. Conducted on-site survey of the facility, including the geodetic work. During the operation  there was revealed a number of violations of the law, as a result of which the deal could be broken with pecuniary losses and damage to the seller’s reputation:

1. the boundaries of the land plot are not specified with the sufficient regulatory accuracy;
2. for all capital construction facilities, located within the land plot, we faced  differences between the available documents and the data contained in the register of real estate - the USRIP (the United State Register of Immovable Property);
3. revealed duplication of each facility;
4. information about the capital construction facilities contained in the USRIP didn't include borders coordinates, as a consequence - was not tied to the land plot;
5. no right of ownership was registered for two facilities of capital construction in the SREC (the State Real Estate Cadastre);
6. inside some capital construction facilities alterations have been made without the approval of the relevant authorities.

Altogether we managed to bring everything in line with the requirements of the current legislation before the purchaser of the facilities began the compliance procedure for the acquired real estate complex.

Why is it of importance?

These aspects are inconsistent with the requirements of the Russian legislation, and when registering a contract of the purchase and sale in such cases, the decision is made to suspend the registration actions. Experts of the Legal Department and the Department of cadastral works of the CG in a timely manner identified and eliminated the inconsistencies, and the owner did not lose a part of the income on the value of the transaction and avoided the additional costs of paying fines and administrative responsibility.