New Capital Real Estate Due Diligence Checklist

A property purchase combines several risks. The party selling the unit must have the authority to do so. The project and land position must be clear. The contract must describe the unit, payment, delivery, default, changes, and obligations. The building must be technically deliverable and operable. The location and unit must have a plausible use. The total cost and exit plan must fit the investor's capacity.

These workstreams are connected but should not be collapsed into one conversation. A salesperson may explain the commercial offer but should not replace independent legal review. A lawyer can review rights and obligations but may not assess construction quality or tenant demand. A technical adviser can inspect progress but may not validate the financial model.

Create a due diligence file with documents received, source, date, questions, answers, and remaining conditions. This reduces the risk of relying on an outdated brochure, an informal message, or a verbal promise that never appears in the contract.

A qualified Egyptian lawyer should review the relevant company, seller, land, project, permit, and contract documentation for the specific transaction. The required documents depend on the deal structure and project status. Investors should avoid using a generic online checklist as a substitute for legal advice.

The contract should identify the parties, unit, area basis, permitted use, price, payment schedule, delivery conditions, grace periods, default remedies, assignment or resale rules, specifications, common areas, parking or storage rights, maintenance responsibilities, service charges, management arrangements, and the process for changes. Any promised feature that materially affects the decision should be reflected in binding documentation where appropriate.

Review how disputes, delays, force majeure, design changes, area adjustments, cancellations, and refunds are handled. Do not assume the most favorable interpretation. Ask the lawyer to explain the practical effect of each clause and the evidence needed before payments are released.

Technical due diligence may include review of design information, construction progress, contractor and consultant roles, material and system specifications, utility readiness, commissioning, quality control, life-safety provisions, and the handover process. The depth should match the size and risk of the investment.

Visible construction progress is useful but not sufficient. Ask how progress is measured, which milestones are complete, what remains on the critical path, and how the contractual date relates to testing, approvals, fit-out readiness, and actual occupancy. A building can appear externally advanced while internal systems and commissioning still require substantial work.

For the exact unit, confirm area measurement, structure, ceiling height, utilities, windows, access, permitted fit-out, HVAC arrangement, power, data, drainage or extraction where relevant, fire requirements, and delivery condition. Technical limitations can narrow the tenant pool even when the location is strong.

The commercial review asks who will use the unit, why they will choose it, how much competing supply exists, and what conditions must be met before leasing or resale is realistic. Avoid relying on a single projected rent or appreciation figure. Request the assumptions, compare current evidence, and test a slower or weaker scenario.

Total cost can include the purchase price, reservation, installments, delivery payments, maintenance or reserve contributions, service charges, fit-out, equipment, utility connections, insurance, professional fees, marketing, brokerage, vacancy, financing, and resale costs. Only include figures that are verified for the specific transaction. When a cost is unknown, mark it as unknown rather than inserting a market guess.

The payment schedule should be reviewed against liquidity. A long schedule may reduce early cash pressure but can create overlapping obligations near delivery. Check whether balloon, delivery, maintenance, or other payments sit outside the headline installment description.

Operating due diligence covers the management entity, service standards, security, cleaning, parking, access, elevators, HVAC, fire and life safety, waste, common areas, tenant rules, insurance, budgeting, and reporting. For smart or mixed-use buildings, it should also cover system support, data, cybersecurity, and coordination between uses.

Exit due diligence asks who could buy or lease the unit later, what documentation they will expect, whether assignment is permitted, what fees or approvals apply, how liquid similar units are, and which features will remain valuable. A resale plan based only on future price growth is incomplete.

Write an investment memo before the final decision. State the objective, evidence, risks, assumptions, unanswered questions, conditions, and maximum acceptable exposure. This creates a disciplined record and makes it easier to reject an opportunity when the evidence does not support the marketing.

Common warning signs include pressure to pay before documents are reviewed, inconsistent unit details, unclear seller authority, missing attachments, shifting delivery language, refusal to explain service costs, unverified operator or tenant claims, and return projections presented without assumptions.

A red flag is not always proof that the transaction is invalid, but it is a reason to slow down and request independent verification. The correct response may be a contract condition, additional document, technical inspection, revised price, different unit, or decision not to proceed.

Due diligence is successful when it improves the decision, even if the result is not to buy.