Joining a Due Diligence Site Survey

A tape measure, GPS-tracker and a spray paint can – I didn`t ever think this would be an usual part of a lawyer’s equipment. But it is, when going for a due diligence trip in Bali’s beautiful environment.

After preparing all the necessary documents as for example the forms to fill in, the land certificate or the building permit in the office, the trip to the property can begin. Due to Bali`s busy street and crazy traffic the drive to the construction site usually takes a bit of time.

AT THE CONSTRUCTION SITE

After a very bumpy car ride and climbing over mounds of gravel and soil we finally made our way to the construction site (this is your reminder to not forget to bring suitable shoes…).

After a short talk or in my case as an intern a short introduction to the lessees or the landowners, who are usually present during the due diligence or the sight survey, the measuring fun can begin. Now the whole building is being measured, even the driveways, no corner or wall is safe from the measuring tape. Also not just the GPS-data of the buildings will be taken and noted down, so it can be used later for the Google Earth drawings of the property but a lot of pictures and videos for documentary purposes, not only from the building site itself but also from the surrounding area to foresee possible future problems with the building or the land.

Seeing a Balinese construction site the first time as a German was a whole experience in itself, as it just seems so primitive and unsafe compared to a German one as I cannot possibly imagine that the bamboo construction will be able to support a whole building and there seem to be no safety regulations as wearing safety shoes or a helmet but somehow it seems to work out (just as the traffic here).

BACK AT THE OFFICE

Back at the office, all the gathered information will be put in the due diligence report. First of all, the report usually consists of the landowners and lessees information like their identities, nationalities and passport numbers followed by a review of the already existing documents such as the lease agreement with the containing terms of the lease, certificates and permits.

Next up in the report will be the relevant governmental regulations about land and building such as the building`s function and designation also regulations about the land and building or the building construction tax followed by water usage, electricity and waste regulations and lastly the regulations regarding the protection and sustainability of the environment.

However, the report will not only consist of the legal aspects but also of the environmental and infrastructural information. A few examples are, the condition of the access road, the power and water supply, the telecommunication signal and/or WIFI-cabling network.

Regarding the site condition the results from the completed physical check of land and building will be reported consisting for example of the boundaries for the land and the building and the land zoning. Additionally, drawings on google earth of the townhouse/villa, surrounding properties, the street and the whole leased property by using the GPS-data and the measurements that were taken before but also the zoning information provided by the client and the official documents will be drawn up. This kind of work not only takes a lot of time but also a lot of sensitivity and patience.

For conclusion the report will consist of the lawyers/counsels advice on the property such as the pros and cons of the purchase and possibilities but also possible future problems and concluding the final advice if the property is qualified or unqualified for purchase or leasing for residential purposes etc.  In case the property will be considered unqualified, CCI will also think of and offer solutions on how to rectify the problems. So as you can see, a lawyers job here never gets boring with just contracts and books everyday as it has so many aspects