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What is due diligence?

The term ‘due diligence’ was first used in the USA under the Securities Act 1933 when brokers had to show they had exercised ‘due diligence’ into their investigation before they sold any equities. Any information they found had to be disclosed to the investor, they would not be held liable for nondisclosure of information that was not discovered in the process of that investigation. Originally the term was limited to public offerings of equity investments, but over time it has come to be associated with investigations of private mergers, acquisitions as well as investments.

Due diligence has different meanings to different people and there is no legal minimum amount of research required to enable a company to claim due diligence has been undertaken. This is why with any investment that you enter into, you must be confident about the due diligence conducted.

At Grosvenor Park Intelligent Investments we take our role in conducting a strict due diligence process in each investment very seriously before making any of them available to our clients. We endeavour to do the best we possibly can by verifying the investments we offer are the safest, have all the necessary legal documentation, all planning, building licenses and titles where appropriate and the developers are of sound financial position.

We recommend that you also seek legal advice when purchasing an investment property. Due to our associations within the industry, we would be able to recommend unbiased professional solicitors in different locations that can help you deal with your investment (these have no links with the investment provider).  This will be at your expense, however on certain investments these costs are made clear up front.

It is also important for you to be aware that your tax position can be affected by any investment you make. Whilst we can provide general information as a guideline towards tax implications, these are only for the country in which the investment is located. GPII do not give and are not qualified to give tax advice and we advise you seek professional help with these matters.