Page 73 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

Annex III: Pre-development study checklist

*Date, place and relevant contact person

I. Legal due diligence

1.0. Acquisition grounds and ownership title: “Object X” denomination and definition of the real
estate/s.

1.1. Ownership documentation, title deeds and contracts of acquisition.

1.2. Property individualization, according to ownership title and latest registration in property
registry.

1.3. Third-party rights, encumbrances and obligations registered as real rights or contractual rights,
or historical rights.

1.4. Ownership history.

Property title track for a minimum period of 10 years, or the period required by the local legislation.
It is important to be able to prove good faith in the acquisition/use of rights over the real estate.

1.5. Examination on the state institution for ownership rights on the property.

Official certificates of the competent state, regional and municipal administrations, confirming
the absence or existence of such rights. In cases where the findings reach the conclusion of the
existence of such rights, then presentation of an additional statement resolving such issues.

1.6. Examination of restitution claims.

Restitution claims arise from the claims of those who were owners prior to the nationalization of the
real estate by governments in former totalitarian states. This claim usually emerges in places were
private property was abolished and the owners were obliged to “sell” or “donate” their estates.
Depending on the case, those rights might be relevant and would pose a legitimate claim over
the real estate property.

1.7. Bankruptcy procedures.

Real estate might have previously been the property of a company, either state or private. When/
if it filed for bankruptcy, its assets, mainly real estate, were most likely legally seized and put under
administration of the state bailiffs. The bailiffs might hold this in order to produce enough funds

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