Research into potential issues, risks and opportunities in the acquisition of investment properties on Curaçao 

The term due diligence in Dutch literally means “due diligence” in English. In sales processes and acquisitions, especially when you also include the entity in which the property is held, this stands for due diligence. Accuracy is particularly important in this type of transaction. The stakes are often high, and every sale or acquisition is different. The process is almost always time-consuming and complex. This requires a flexible consultant with thorough knowledge and experience.

Buyer Support: Due Diligence

In a takeover process, a lot of information is exchanged between the seller and buyer. The seller tends to present the property in the best light, while their advisor emphasizes the positive sides. The buyer usually makes an offer based on the information gathered. In the next step, the buyer validates this image and discovers any risks associated with the transaction. A due diligence investigation allows you to verify whether figures are correct, such as expiry dates of rental agreements, payment behavior of tenants, and current and expected costs.

We Support You in the Research

Our research sometimes reveals unpleasant surprises that can seriously affect the chance of success. We examine rental flows, analyze costs, and, when dealing with an entity, review returns and annual accounts. In summary, due diligence is essential in the real estate purchase process in Curaçao, as it allows you to conduct a thorough investigation before finalizing the purchase.

Five Key Points in the Due Diligence Process

1. Title Research: Check title documents and conduct thorough research to confirm the seller has the right to sell and that there are no disputes, restrictions, or encumbrances.
2. Structural Inspection: Have an independent surveyor inspect the property for architectural and structural integrity, identifying defects or necessary maintenance.
3. Environmental Aspects: Investigate potential environmental issues such as soil contamination or waste disposal that could affect value or operation.
4. Legal and Financial Obligations: Check for outstanding disputes, lawsuits, tax obligations, or other financial responsibilities that could impact the property.
5. Zoning and Regulations: Verify compliance with local regulations, including restrictions on use, building height, and density.

Paying attention to these five aspects ensures you are better informed and minimizes potential risks before making a final decision. It is also wise to seek professional advice from a lawyer, real estate agent, or other experts to protect your interests during the purchase process.

For more information about the due diligence process, contact me at [email protected] or +599 9 686 2994.

Adriaan Smit – Real Estate and Financial Advisor