Abstract
A set of investigations which a prospective purchaser (a buyer) conducts prior to a property transaction is referred to as due diligence, and results of a physical investigation conducted as part of the due diligence are complied in an engineering report. The results are reported as opinions of the engineers.
Property transactions traditionally have taken place under regulatory compliance which used to be considered as a minimum requirement in Japan. Main subjects of the transaction used to be lands. Buildings were considered as extras.
In the current movement of real estate securitization, however, it has been recognized that reale state profits are earned from both lands and buildings. A brand new scheme is coming to be established such that a prospective purchaser (a buyer) conducts due diligence under his/her responsibilities, evaluates risks associated with buildings, lands or the environment, and invests with appropriate investment decisions.
