The second step is to conduct a legal examination of the property you intend to buy or sell.This legal examination aims to ensure that the property has a clear and valid ownership status, free from legal encumbrances, and compliant with zoning regulations and permits.
Here are some things to check in the legal examination:
- Ownership status: Verify property ownership and ensure that the seller has the legitimate right to sell it. Check relevant documents such as the certificate of ownership, deed of sale, inheritance certificate, power of attorney, and others. If the property is part of a company, also check company documents like articles of incorporation, bylaws, business permits, and more.
- Legal encumbrances: Check for legal disputes, mortgages, or other burdens affecting property ownership. You can verify this through the National Land Agency, District Court, Religious Court, or other legal institutions. If there are legal encumbrances, ensure that the seller has resolved or removed them before proceeding with the transaction.
- Zoning and permits: Ensure that the property complies with the permitted zoning and check for any required permits. You can check this through the Spatial Planning Agency, Public Works Agency, Environmental Agency, or other relevant institutions. If the property doesn’t comply with zoning or lacks permits, you can apply for zoning changes or permit processing, but be aware that the process may be time-consuming and costly.