RICS revises best practices for due diligence to reduce investor risk

The Royal Institution of Chartered Surveyors (RICS) has released a new best practice and guidance note for technical due diligence aimed at increasing transparency and reducing investor risk.

The RICS TDD guidance note aims to protect clients and supports best practice across the European property industry.

As Europe is not just one single market but rather a conglomerate of different markets, the guidance details a range of services rather than providing a standard survey report. This ensures that a wide range of components of any particular report should be discussed between clients and their adviser at the time of defining the instruction. It also enables the parties to clarify which components may be required by law or are particularly relevant in a particular market. Most importantly, the document provides a standard benchmark on which clients can compare and contrast reports across European countries in which they are active.

'When it comes to due diligence, the RICS guidance note covers all scenarios, from commercial, retail or industrial assets to sites under construction. It provides property professionals with a common standard on a truly pan-European perspective,' added Iain Leyden FRICS, director of Project Management at Colliers International, Poland.