Real estate legal due diligence

Comprehensive investment risk analysis

GJW Gramza i Wspólnicy Law Firm offers specialized services in the field of real estate legal audits, aimed at a reliable assessment of the property’s legal status and the identification of potential risks associated with the planned investment. A real estate audit is a key element ensuring the security of the investment process—regardless of whether it concerns the acquisition of a construction plot, commercial premises, or the execution of larger commercial transactions.

Our experience and interdisciplinary approach allow for a comprehensive analysis of the legal situation of the property—from assessing the content of the land and mortgage register, through planning and construction analysis, to verifying corporate documents and contracts concluded by the owner. We treat every project individually, tailoring the scope of the audit to the client’s needs and objectives.

Scope of real estate legal audit

As part of the conducted audit, we analyse a full spectrum of legal aspects that may affect the acquisition or use of the real estate. Specifically:

• The legal status of the property, with particular emphasis on the content of the Land and Mortgage Register, registered encumbrances, mortgages, easements, and notices of claims;

• Compliance of the investment project with planning documentation – including the Local Spatial Development Plan (MPZP), Zoning Decisions (WZ), administrative decisions, and building permits;

• The legality of existing structures, including the identification of unauthorised construction or other irregularities in design and executive documentation;

• Analysis of concluded agreements, such as lease and tenancy agreements, preliminary contracts, or development agreements – taking into account their impact on the feasibility of the investment;

• Assessment of the legal and financial standing of the property owner, including risks of enforcement proceedings, bankruptcy, or other restrictions on the disposal of the property;

• Verification of corporate documents – in cases where the owner is a commercial company, we analyse, among others, articles of association, corporate resolutions, and restrictions regarding representation or required corporate consents.

Sources of information and methodology

In the preparation of a real estate legal audit, we utilise official and authoritative sources of information, which allow for a precise assessment of the property’s legal status. Key sources include the Land and Mortgage Registers, excerpts from land registers, map extracts and excerpts from the land and building register, design and planning documentation (e.g., Local Spatial Development Plans), as well as business registers, including the National Court Register (KRS). We also obtain data by submitting requests for access to public information.

Additionally, we analyse non-formal information which – although not disclosed in public registers – may have a significant impact on the legal standing of the property. This includes, for instance, informal agreements, ongoing mediations or negotiations, as well as the actual possession of the land by third parties. Mediation proceedings are conducted between parties to a dispute (e.g., owner and tenant, co-owners, or investors) with the aim of reaching an amicable resolution, often facilitated by a mediator. Although such proceedings are not visible in official registers, they may culminate in a settlement that affects the rights to the property. This comprehensive approach enables a thorough and reliable assessment of all risks associated with the real estate.

Real estate legal services for private individuals

Drawing on our extensive litigation experience, we analyse both concluded and pending proceedings that may be material to determining the legal status of the real estate. We verify the status of administrative, civil, and criminal cases in terms of their impact on the ability to dispose of the property. Our analysis encompasses not only proceedings before courts or authorities but also mediations and settlement negotiations. As part of the audit, we assess the risk associated with the property owner’s insolvency and the potential for enforcement proceedings being brought against the asset.

Proceedings and risks – for private clients

As part of our real estate legal advisory, we place particular emphasis on all administrative and civil proceedings that may affect the security of the transaction and the legal status of the property. Our real estate practice verifies, among others:

• neighbour disputes, boundary encroachments, restrictions resulting from easements, or development prohibitions;

• pending or concluded adverse possession proceedings, which may challenge the ownership of the property;

• the risk of annulment of administrative decisions, including building permits;

• cases of bailiff enforcement or the freezing of assets;

• issues arising from the owner’s financial standing – such as mortgages, bank debts, and bailiff seizures.

Such an analysis of the legal status of the property, particularly in the case of a construction plot audit or the purchase of residential premises, allows for the avoidance of costly mistakes and legal risks.

Real estate legal advisory for investors and corporate entities

Proceedings and risks – for investors and corporate entities

In providing services to investors and corporate entities in the field of real estate law, we attach particular importance to the analysis of the investment’s legal environment. We conduct comprehensive commercial real estate legal due diligence as well as audits of construction plots, including:

• the verification of administrative proceedings that may result in the annulment of zoning decisions or building permits

• the identification of civil disputes (e.g., adverse possession, development restrictions, transmission easements);

• the assessment of risks related to bailiff enforcement, insolvency proceedings of the owners, or seizures by creditors:

• the analysis of previously concluded agreements, such as preliminary, development, or financial institution contracts – which may affect the freedom to dispose of the property;

• the examination of the impact of corporate obligations (from the National Court Register, articles of association) on the feasibility of the planned investment.

Consequently, the real estate legal audit conducted by our firm ensures the full security of the planned investment and mitigates risks during the preparatory stage.

Rely on the experience of GJW Gramza i Wspólnicy

Investment decisions require precision and robust safeguards. Our team of legal counsel provides not only a thorough real estate legal audit but also clear recommendations that effectively mitigate an investor’s legal and financial risks. We act with accountability, anticipating legal implications and assisting our clients in making decisions with full awareness of their consequences.

Ensure your legal security – contact us to find out how we can support your investment. We also invite you to explore our real estate due diligence offer, tailored for private clients, developers, and commercial investors.