Operating-building due diligence

Building documents and management records

A step-by-step system for requesting and reviewing operating-building records without assuming that one certificate, invoice or verbal promise validates the whole building.

Facts, party statements, analytical conclusions and unknowns are shown separately. Re-check evidence for the date of the specific transaction.

Updated 23 July 2026

In short

An operating-building file is not valuable because it contains many documents. It is valuable when it answers defined transaction questions: whether the relevant tower or completed phase may be occupied, who has authority over common property, which rules apply today, how money is collected and spent, which inspections and repairs have taken place, and which obligations may pass to the next owner.

Build an indexed evidence pack. For every record capture its title, issuer or counterparty, date, reporting period, language, version, signature status, completeness and the exact conclusion it supports. A verbal answer, marketing deck, cropped screenshot or undated file remains an unverified statement.

Start with a document index

A folder does not show what was checked. For every item, record the exact title, number, date, issuing authority or party, property and phase, validity, version received, verification route, discrepancy, owner and next action.

Distinguish an original, certified copy, ordinary copy, extract and oral statement. A missing document remains an open question rather than zero or an automatic rejection.

Identify the exact subject of the review first

Before requesting records, fix the official project name, address, available land or cadastral identifiers, tower, phase, block, residential and commercial components, unit number, parking and storage. In a phased or mixed-use development, evidence covering one tower should not automatically be treated as covering another.

Reconcile names and legal entities across the SPA, title materials, payment instructions, house rules, service-charge invoice and management documents. A difference may be a translation or former brand, but it still requires a written explanation and an evidenced link between the entities.

Permits and occupancy: verify scope

For a permit or certificate, match its number, date, applicant, site, building, tower, phase, permitted use and issuing authority. Then check whether it is current and applies to the selected premises and present condition.

Appearance, occupation and connected utilities do not establish lawful construction, occupancy, title or approval of later alterations. Different documents address those questions.

Who actually manages the building and on what authority

Collect the internal regulations, evidence establishing or appointing the management body, current management agreement, developer handover records, signatory evidence and authority term. Identify separately who employs staff and contractors, issues invoices, receives money, holds reserves and controls bank accounts.

A management-company name on the reception desk proves little by itself. Reconcile the registered entity, contract party, payment recipient and actual operator. Where the developer, management company and owners’ body use related brands, their duties and funds should still be separated in the records.

House rules: obtain the current version and change history

Request the complete rules with schedules, commencement date, adoption process, voting evidence and all later amendments. Review provisions on unit use, letting, guests, pets, works, noise, parking, access, short stays, moving, common facilities and sanctions.

Rules attached to the SPA, a tenant leaflet and the current internal regulations may differ. Record which instrument has contractual or governance force and who may amend it. Do not convert a verbal rule from security or an agent into a decision assumption until the governing document supports it.

Financial pack: more than the current service charge

Request the current tariff and charging basis, approved budget, actual income and expenditure, owner receivables, collection rate, bank statements or independent balance confirmation, reserve fund, special assessments, developer subsidies and major-works plan. At minimum compare budget, actual and forecast rather than relying on one monthly invoice.

Unknown amounts are not zero. If privacy limits unit-level disclosure, request aggregate arrears, ageing, concentration among major debtors, cash balances, related parties and collection procedures. Extra caution is required where the budget assumes full payment by unsold units, temporary developer support or income from a commercial component that is not yet operating.

Technical records: schedules, reports and close-out evidence

Request an asset register and available records for lifts, generator, transformers, water tanks, pumps, fire systems, drainage, pool, façade, roof, waterproofing and access systems. Useful fields for each asset include model, commissioning date, contractor, warranty, maintenance regime, latest work, open defects and replacement plan.

An inspection report has value only when findings are followed through. For each item look for an action owner, deadline, close-out evidence and retest. A `completed` label without a certificate, photograph, invoice, test or responsible sign-off remains an assertion. An inaccessible plant room should be recorded as an access limitation, not as evidence of sound condition.

Insurance, incidents and claims

Request evidence of common-property and liability insurance, policy period, insured party, material exclusions, limits and significant claim history. A building policy does not necessarily cover the unit’s fit-out, contents, lost rent or the owner’s liability; those are separate owner questions.

Also request an incident and material-complaint log: fire or smoke, flooding, pump failure, lift outage, façade damage, prolonged utility loss, common-area injury, water ingress and recurring leaks. Record not only the event but its cause, extent, response time, cost, insurance recovery and measures taken to prevent recurrence.

Owner meetings and decisions

Minutes and written resolutions can reveal recurring problems, planned expenditure and unresolved objections. Request available records concerning budgets, reserves, major works, manager replacement, litigation or debt issues, use of common areas and rule changes. Reconcile notice date, quorum or applicable threshold, result and implementation.

Minutes do not replace verification of voting and signing authority. If a decision materially affects future cost or unit use, counsel should check the governing rules, the body’s authority and whether the decision binds a new owner.

Review records linked to the selected unit separately

A well-run building does not close the risks of the selected unit. Request evidence of no outstanding service charge, utilities, parking or special assessments; records of rule breaches, unresolved maintenance requests, water ingress from adjacent property, approved alterations, keys, access cards and any tenant deposit being transferred.

Check the period covered by every clearance and how amounts up to completion are allocated. If billing is delayed or a special assessment has been approved but not yet collected, the contract should allocate it. Building-wide evidence and seller-specific evidence answer different questions and both are required.

Authenticity, translation and contradictions

For material records retain the complete file, acquisition source and a controlled copy. Check number, seal, signature, schedules, pages and translation correspondence. An English or Russian translation helps the reader, but the status of the official Khmer text must be established for a legal conflict.

Maintain a contradiction log. Where the record, manager and seller give different answers, do not select the most convenient version. Record the conflict, seek written clarification from the authorised party and decide whether the uncertainty affects price, a contract condition, retention of funds or the decision not to proceed.

When a record is unavailable: assess reason and consequence

A buyer may not receive personal data, a commercially sensitive contract or a complete bank package. That does not end the review. Alternatives include a redacted copy, auditor or bank confirmation, aggregate figures, supervised inspection, a summary of material terms or a contractual seller representation.

Distinguish a legitimate access restriction, weak record-keeping and refusal to disclose adverse information. Record what is unavailable, who declined, the stated reason, substitute evidence and residual risk. For a critical record, absence of an acceptable alternative may itself justify pausing the transaction.

When the records review should pause the process

Pause and appoint the appropriate specialist if the occupancy-certificate scope cannot be identified; the service-charge recipient is not linked to the authorised body; reserve custody is unknown; budget and bank balance materially disagree; rules have no date or adoption trail; serious technical findings remain open for years; records for different towers are mixed; or the seller demands payment before unit clearance.

A pause is not automatically a final rejection. It means the risk cannot be closed by a promise. Define the required deliverable: original or certified copy, authority letter, legal opinion, engineer inspection, bank confirmation, condition precedent, escrow or retention, or a price adjustment tied to an evidenced liability.

What the review should produce

The final pack should contain the document index, copies and storage references, discrepancy table, unresolved risk list and a concise decision for every critical question. State what is document-confirmed, party-stated, conflicting and unconfirmed.

Pass legal questions to counsel, technical questions to an engineer, and building governance and budget records to a reviewer able to test the actual building files.

Hub materials