Farre+Stevenson Architecture provides technical property due diligence for acquisitions, sales, investments and complex real-estate operations in Rome and throughout Italy. The service is intended to identify the documentary, planning, building, cadastral and physical condition of a property before the client assumes contractual or financial commitments.
Technical due diligence does not replace legal, notarial, tax or financial advice. It provides the architectural and technical evidence required to understand whether the property corresponds with the available approvals, whether irregularities or constraints are present, and which matters should be resolved, priced or reflected in the transaction.
The scope of the investigation is defined according to the property, the intended operation, the available documentation and the level of certainty required by the client.
Understanding the property before acquisition or sale
A property may appear suitable from a commercial or architectural point of view while containing documentary or technical issues that affect its value, use, financing, renovation or future transfer.
A due diligence investigation may help determine:
- whether the existing condition corresponds with approved planning and building records;
- whether the current use is authorised;
- whether previous alterations were properly approved;
- whether planning, landscape or heritage constraints apply;
- whether cadastral records correspond with the property;
- whether defects or technical risks require further investigation;
- whether irregularities can potentially be regularised or require reinstatement;
- whether the intended renovation or use is compatible with the property;
- which matters should be addressed before completion of the transaction.
Due diligence and feasibility studies
Technical due diligence and feasibility studies are related but distinct services.
Due diligence examines the property as it exists and verifies the principal risks affecting acquisition, ownership, sale or investment.
A feasibility study examines whether and how a future project can be implemented, considering design objectives, approvals, costs and programme.
The two services may be commissioned together when the client needs both a reliable assessment of the existing property and an evaluation of its potential transformation.
Preliminary document review
The investigation begins with the collection and review of the documentation available from the seller, owner, agent, administrator, public authorities and other relevant sources.
Documents may include:
- building permits and approved architectural drawings;
- subsequent amendments and planning applications;
- retrospective approvals or planning amnesties;
- completion and occupancy documentation;
- cadastral plans and historical cadastral records;
- title documents and property descriptions;
- structural documents and certificates;
- building-services declarations and certificates;
- energy-performance documentation;
- condominium records relevant to the property;
- heritage, landscape or other statutory approvals;
- previous technical reports and surveys.
The absence of a document is itself relevant information and may require archival research or further clarification.
Planning and building-history research
A principal objective of the due diligence process is to reconstruct the planning and building history of the property.
The research may examine:
- the original authorisation of the building;
- approved layouts and elevations;
- later changes, extensions or subdivisions;
- changes of use;
- retrospective approvals;
- administrative proceedings affecting the property;
- historical drawings and archival documents;
- relationships between individual units and common parts.
The level of certainty achievable depends on the quality and completeness of the available records. Where archives are incomplete, the report distinguishes verified facts from matters that remain uncertain.
Existing lawful condition
The physical existence of a room, opening, terrace, mezzanine or extension does not by itself demonstrate that it is lawful. The existing condition must be compared with the relevant approved documentation and interpreted within the applicable legal framework.
The assessment may identify:
- different internal layouts;
- altered windows, doors or façades;
- enclosed balconies or terraces;
- mezzanines or additional floor area;
- changes to common parts;
- different property boundaries;
- changes of use;
- works not represented in available approvals;
- uncertainties requiring further research.
The due diligence report does not itself constitute a planning approval or certification of compliance. It identifies the available evidence, the apparent differences and the further actions that may be required.
Measured survey and inspection
Where necessary, Farre+Stevenson carries out an inspection and architectural survey of the property.
The survey may record:
- internal dimensions and room layouts;
- floor levels and ceiling heights;
- openings, stairs and circulation;
- terraces, balconies and external areas;
- visible construction systems;
- location of principal services and plant areas;
- evidence of previous alterations;
- visible defects and maintenance conditions;
- photographic documentation.
The inspection is generally visual and non-destructive unless a different scope has been agreed. Hidden defects and concealed construction cannot be ruled out without specialist or invasive investigations.
Comparison between documents and existing conditions
The measured condition is compared with the available approved drawings and other documentary evidence.
The comparison may be represented through:
- annotated plans;
- overlay drawings;
- tables of differences;
- photographic references;
- descriptions of each identified discrepancy;
- classification of the significance of the issue;
- recommendations for further verification.
Not every dimensional difference has the same legal or technical significance. Each matter must be evaluated in relation to the applicable rules, the date of construction and the available evidence.
Cadastral records
Cadastral documentation is important for identifying the property, its registered configuration and its tax classification. It is not, however, automatically equivalent to planning or building approval.
The cadastral review may include:
- current cadastral plan;
- historical plans;
- property identification and sub-unit numbers;
- registered category, class and floor area;
- history of subdivisions, mergers or other changes;
- comparison between cadastral plan and existing condition;
- comparison between cadastral and planning documentation.
A cadastral plan may support the reconstruction of the property’s history, but cadastral conformity and planning-law compliance must be assessed separately.
Current authorised use
The due diligence process examines whether the current or proposed use of the property is compatible with the available approvals and applicable planning rules.
The assessment may consider:
- current authorised use;
- cadastral classification;
- actual use observed on site;
- previous changes of use;
- possible restrictions on future use;
- minimum dimensional and sanitary standards;
- accessibility and fire-safety implications;
- additional operational licences required for commercial activities.
Planning use, cadastral category and commercial authorisation are different legal and administrative matters and should not be treated as interchangeable.
Heritage, landscape and planning constraints
The property may be affected by protections or restrictions that influence alterations, maintenance, change of use or redevelopment.
The investigation may include:
- architectural or cultural-heritage protection;
- landscape protection;
- archaeological constraints;
- historic-centre regulations;
- planning classifications and special provisions;
- protected views or environmental restrictions;
- requirements for heritage or landscape approvals;
- limitations affecting external alterations, roofs, façades or open spaces.
The presence of a constraint does not necessarily prevent intervention, but it may affect design freedom, cost, timing and the authorities involved.
Condominium and common-property matters
In apartments and buildings divided into separate units, technical issues may involve common parts or require condominium consent.
The investigation may consider:
- property boundaries between individual and common areas;
- façades, roofs, terraces and structural elements;
- service risers and shared installations;
- exclusive-use areas;
- previous condominium approvals;
- works affecting the external appearance of the building;
- potential conflicts between planning permission and private rights.
Legal interpretation of title, easements, ownership and condominium rights remains the responsibility of the appointed lawyer or notary.
Structural documentation and preliminary risk review
The due diligence may include a preliminary review of the structural information available for the property.
This may concern:
- original structural design documents;
- later structural alterations;
- certificates and testing records;
- visible cracking or deformation;
- removed or altered structural elements;
- balconies, roofs, mezzanines and stairs;
- additional loads introduced by previous works;
- the need for specialist structural assessment.
A visual review is not a structural certification. Where structural safety or capacity is material to the transaction, a structural engineer should be appointed to carry out the required investigations and calculations.
Building services and compliance documentation
The existence and condition of electrical, plumbing, heating, cooling and other systems may affect both the value of the property and the cost of future works.
The review may include:
- available declarations of conformity;
- age and apparent condition of principal systems;
- location of equipment and service routes;
- compatibility with the current use;
- evidence of later alterations;
- potential need for upgrading or replacement;
- coordination with specialist engineers where required.
The absence of certification does not automatically establish that a system is unsafe, but it may require technical verification and should be reflected in the risk assessment.
Energy-performance documentation
The investigation may review the available energy-performance certificate and related technical information.
The review may consider:
- presence and validity of the energy certificate;
- consistency between the certificate and the property;
- main characteristics of the building envelope;
- heating and cooling systems;
- apparent opportunities for improvement;
- potential effects on renovation cost.
A due diligence review does not replace a detailed energy audit where one is required.
Visible defects and maintenance condition
The inspection may identify visible conditions that require maintenance, specialist investigation or allowance in the purchase budget.
These may include:
- water infiltration and dampness;
- cracking and detachment of finishes;
- deterioration of roofs or terraces;
- damaged windows or external elements;
- corrosion or exposed reinforcement;
- poor ventilation or condensation;
- obsolete installations;
- evidence of inadequate previous repairs.
The visual inspection cannot identify every hidden defect. Where necessary, the report recommends specialist surveys, testing or opening-up works.
Hazardous materials and environmental matters
Depending on the age, construction and previous use of the property, specialist investigation may be required for materials or environmental conditions.
Potential matters include:
- asbestos-containing materials;
- lead-based coatings;
- contaminated soil or previous industrial use;
- underground tanks;
- radon or indoor-air issues;
- mould and biological contamination;
- special waste-disposal requirements.
These matters are assessed by appropriately qualified specialists. The technical due diligence identifies the potential need for such investigations where relevant.
Accessibility and fire-safety issues
The existing use or intended future use may require compliance with accessibility and fire-safety standards.
The preliminary review may consider:
- accessible entrance and circulation;
- stairs, lifts and changes of level;
- sanitary facilities;
- escape routes and occupancy;
- fire separation and resistance;
- access for emergency services;
- required fire-safety procedures;
- effects on future renovation or change of use.
Detailed verification is carried out with the relevant specialists where the use or scale of the property requires it.
Assessment of irregularities
Where a discrepancy or irregularity is identified, the report examines its potential significance and the information required to determine the appropriate response.
Possible scenarios may include:
- no action required;
- additional documentary research;
- correction of cadastral records;
- technical clarification;
- retrospective planning or building procedure;
- heritage or landscape review;
- partial or complete reinstatement;
- redesign of the intended renovation;
- specialist legal advice.
The availability of a retrospective procedure cannot be assumed. It depends on the type and date of the works, the applicable legislation and the evidence available.
Preliminary remediation scenarios
The due diligence may outline possible technical responses to the issues identified.
These may include:
- documentary completion;
- survey and updated drawings;
- cadastral amendment;
- retrospective approval;
- removal of unauthorised works;
- restoration of approved conditions;
- technical upgrading;
- specialist investigations;
- contractual retention or price adjustment.
These are preliminary scenarios and not a substitute for the formal design, application or legal strategy required to resolve the matter.
Indicative cost and programme implications
Where sufficient information is available, the report may provide an initial indication of the likely cost and programme implications of the principal issues.
Allowances may concern:
- archival research and surveys;
- planning or cadastral procedures;
- professional and specialist services;
- remedial construction works;
- structural or services upgrades;
- heritage or landscape documentation;
- temporary works and access;
- contingency for unresolved conditions.
At due diligence stage, such figures are indicative and cannot replace detailed design, bills of quantities or contractor quotations.
Risk classification
The findings may be organised according to the seriousness and immediacy of the risk.
A report may distinguish:
- matters verified and satisfactory;
- minor inconsistencies;
- items requiring clarification before completion;
- issues affecting future works or use;
- significant planning or technical risks;
- matters requiring specialist legal advice;
- conditions that may justify renegotiation or withdrawal.
The purpose is not to create alarm but to enable the client and advisers to understand the consequences of each finding.
Due diligence for international buyers in Italy
International buyers may be unfamiliar with the relationship between planning approvals, cadastral records, title documents, condominium matters and the physical condition of Italian property.
Farre+Stevenson can provide a local technical point of contact and coordinate:
- collection of property documents;
- archival research;
- inspection and survey;
- planning and cadastral comparison;
- communication with the estate agent and seller’s technicians;
- technical questions for the lawyer or notary;
- preliminary renovation and remediation considerations;
- English-language reporting and online review meetings.
The practice works in coordination with the client’s lawyer, notary, tax adviser and financial advisers, while remaining responsible only for the architectural and technical scope of its appointment.
Coordination with lawyers and notaries
Technical findings frequently have contractual or legal consequences. The due diligence report may therefore provide technical evidence for review by the client’s lawyer or notary.
This may include:
- identification of missing documents;
- technical description of discrepancies;
- questions requiring a declaration from the seller;
- matters to be resolved before completion;
- conditions to be included in preliminary or final agreements;
- possible retention, guarantee or price-adjustment matters.
Farre+Stevenson does not provide legal advice and does not determine contractual language. The technical report supports the professionals responsible for those decisions.
Coordination with tax and financial advisers
Planning, cadastral and construction matters can affect valuation, financing, taxation and future investment.
The report may identify information relevant to:
- mortgage or lender requirements;
- tax classification;
- renovation allowances and incentives;
- budgeting for remediation;
- future sale or refinancing;
- investment appraisal.
Tax, valuation and financial conclusions remain the responsibility of the relevant advisers.
Due diligence for sellers
Technical due diligence is also useful before placing a property on the market.
A seller-side review may help:
- identify missing documentation;
- correct cadastral inconsistencies;
- clarify the planning history;
- resolve or disclose technical issues;
- prepare documents for the notary and buyer;
- reduce delays during negotiation;
- avoid disputes over matters discovered late in the transaction.
Early investigation gives the owner more time to decide whether to resolve an issue, disclose it or reflect it in the transaction.
Due diligence for commercial and investment property
Commercial and investment property requires analysis not only of physical condition but also of authorised use, operational requirements and future adaptability.
The review may consider:
- existing and permitted use;
- commercial and operational licences;
- customer, staff and service circulation;
- accessibility and fire-safety requirements;
- ventilation, extraction and plant capacity;
- signage and façade restrictions;
- subdivision or merger potential;
- future renovation and capital expenditure.
Due diligence report and deliverables
Depending on the agreed scope, the final documentation may include:
- executive summary;
- description of the property and intended operation;
- list of documents reviewed;
- planning and building-history analysis;
- cadastral review;
- inspection and survey findings;
- comparison drawings;
- photographic documentation;
- schedule of discrepancies and risks;
- recommended further investigations;
- preliminary remediation scenarios;
- indicative programme and cost implications;
- matters requiring legal, notarial or specialist review.
The report distinguishes between verified information, professional interpretation, unresolved matters and assumptions used for preliminary analysis.
Limits of the investigation
Technical due diligence is based on the records, access and information available at the time of the appointment.
Unless expressly included, it does not constitute:
- a legal opinion on title or ownership;
- a structural safety certificate;
- a complete services-condition survey;
- an environmental assessment;
- a valuation;
- a tax opinion;
- formal planning approval;
- confirmation of hidden or inaccessible construction;
- a guarantee that public archives are complete.
Where evidence is unavailable or contradictory, the report identifies the uncertainty and recommends the next appropriate step.
Technical due diligence in Rome and throughout Italy
Farre+Stevenson provides technical due diligence for residential, commercial, hospitality, cultural and investment properties in Rome and throughout Italy.
For projects involving international clients or professionals based abroad, the work can be coordinated through English-language reports, online meetings and collaboration with local lawyers, notaries, surveyors, engineers and tax advisers.
Farre+Stevenson Architecture investigates the planning, building, cadastral and physical condition of properties so that purchasers, sellers and investors can understand the principal technical risks before completing a transaction or committing to a major investment.