Publication date: 07.05.2025
Kyrylkin Radion Olehovych is an expert in commercial law and procedure. He provides professional support for real estate and construction transactions, offers legal advice on land law matters, and ensures the protection of property rights.
Background: The client requested a legal due diligence check of an apartment he planned to purchase. The main task was to obtain a comprehensive legal opinion on the condition of the property, its “clean title,” identification of potential risks and issues that could complicate ownership or use of the apartment in the future. The client wanted to avoid losing money, facing ownership disputes, or legal problems after the purchase.
Property issues
During the review of documents and information about the apartment, several serious risks were identified:
✅ Ownership issues:
The previous owner had not completed the state registration of ownership rights. The State Register of Property Rights had no recorded ownership for the property.
✅ Document discrepancies:
The technical documentation showed discrepancies in the apartment’s size — the actual size differed from what was stated in the title documents.
Work process
✅ 1. Legal document review
At the first stage, a detailed analysis of all title documents was conducted: purchase agreement, extracts from the state register, technical passport, and building documentation. Special attention was paid to potential encumbrances, restrictions on disposal, arrests, or disputes over the property.
✅ 2. Checking state registers
In addition to paper document review, relevant state registers were checked. This confirmed the absence of proper ownership registration for the previous owner, posing risks for the buyer.
✅ 3. Preparation of the property report
After analyzing the documents, a detailed Due Diligence report was prepared, outlining the identified problems, risks associated with purchasing the apartment, and recommendations on how to address them. The client was informed of the risks of signing a purchase agreement without addressing the issues and the potential consequences of discrepancies between technical documentation and the actual property condition.
Inspection result:
The client received a comprehensive legal report listing the risks, recommendations for eliminating shortcomings, and advice on safely formalizing the purchase agreement. Thanks to this work, the client:
- avoided buying a problematic property;
- protected his finances by avoiding a risky deal;
- received recommendations on how to structure future real estate transactions to avoid similar risks.
Completion time: approximately 10 business days from the initial request to delivery of the final report.
What risks can arise and how to address them?
1. Lack of ownership registration. Solution: prior registration of the seller’s rights, preparation of notarized documents, clarification of information with a notary.
2. Discrepancies in technical documentation. Solution: conduct an independent technical inventory and bring documents into compliance.
3. Hidden encumbrances. Solution: request certificates confirming no arrests, mortgages, or restrictions; check data through registers.
How is a legal property check conducted?
Main stages:
- Client consultation.
- Analysis of title documents.
- Checking information in state registers.
- Preparation of a detailed report.
- Providing recommendations for a safe deal.
Legal due diligence of real estate is an essential step before purchase, allowing the buyer to protect their interests and avoid significant financial risks. Thanks to quality legal support, the client was able to make an informed decision, avoid problems, and safeguard their funds. This approach ensures a clean transaction and peaceful property ownership in the future.
