Real Estate Investment Audit: Due Diligence Before Purchase

Identify all risks within 21 days before signing: technical, legal, planning, tax.

60% of post-acquisition disputes for properties over €2M stem from risks detectable BEFORE signing: planning, structure, co-ownership, litigation. Our pre-purchase audit mobilises an architect, construction economist, tax specialist and planning lawyer to deliver within 21 days a 40 to 80-page report covering 6 critical areas. Typical cost €4,500 to €12,000 excl. VAT — or 0.1 to 0.2% of a €6M property price, to avoid seven-figure losses.

In-depth analysis

The 6 Pillars of Our Due Diligence

1. Technical — actual condition of structure, roof, façades, common areas, external/internal insulation, electricity, plumbing. Inspection by architect + economist over 4 to 6 hours.

2. Legal — title deed, co-ownership, mortgages, easements, leases, occupation, ongoing litigation.

3. Planning — local urban plan (PLU), heritage protection (ABF), classified zones, building rights, alignment, upcoming municipal projects.

4. Tax — wealth tax (IFI), property tax, latent capital gains, applicable Malraux/heritage schemes.

5. Co-ownership (if applicable) — accounts, litigation, reserve funds, management, general meetings.

6. Natural and Environmental Risks — flood risk plans (PPRI), clay shrink-swell, radon, polluted soils, lead, asbestos, termites.

Typical Timeline: 21 Days

Day 0 — Audit mandate signed. Day 2 to Day 5 — Document collection (titles, planning, co-ownership, diagnostics). Day 5 to Day 10 — Technical inspection (architect + economist). Day 8 to Day 15 — Specialist analyses (structure, planning, taxation). Day 18 to Day 21 — Consolidated report delivered (40-80 pages, 5-page executive summary, scanned annexes).

The report classifies each risk as: critical (deal-breaker) / major (negotiation) / minor (to be acknowledged) / monitoring.

Real Cases Where Audits Saved the Buyer

Case 1 — 17th-century townhouse in Strasbourg, listed price €4.2M. Audit revealed restrictive local plan preventing the buyer’s planned veranda extension. Renegotiation: -€650K.

Case 2 — Villa La Croisette Cannes, price €11M. Audit uncovered pending neighbour dispute over obstructed view. Buyer withdrew.

Case 3 — Chalet Megève, price €7.5M. Audit revealed land in avalanche risk zone (PPRn). Future insurance premium reduction incorporated into negotiation: -€200K plus specific warranty clause.

Our key engagements

Real Estate Investment Audit: Due Diligence Before Purchase

Architect + economist + lawyer + tax specialist engaged

40-80 page report delivered within 21 days

Detection of critical / major / minor risks

Combined professional liability > €5M per file

Packaged audit + negotiation fee available

Frequently Asked Questions

Everything you need to know before your project

What is the turnaround time between mandate signing and report delivery?

21 days standard, 14 days urgent service (with 30% surcharge). For properties under contract with tight deadlines, we prioritise.

Does the audit replace mandatory legal diagnostics?

No. Regulatory diagnostics (energy performance, lead, asbestos, ERP, gas, electricity) remain mandatory and are provided by the seller. Our audit complements and cross-checks these with a technical/legal overview.

Are you covered by professional liability insurance?

Yes, professional liability for architect, economist, lawyer, tax specialist — combined coverage exceeding €5M per file.

How much does an audit cost for a €5M property?

Standard package €6,800 to €9,200 excl. VAT for typical villa/townhouse/penthouse. For complex properties (castle, listed townhouse, co-ownership > 30 units), costs may reach €15,000 excl. VAT.

Is the audit sufficient for negotiation?

The report is the main negotiation tool but our negotiation team operationalises it. Ideally, audit and negotiation are commissioned together (packaged fee).