Vendor surveys/vendor technical due diligence

This section outlines the process, limitations, and key information surrounding vendor surveys.

The term ‘vendor survey’ is commonly used to describe a technical due diligence (TDD) survey (or pre-acquisition survey) commissioned by a vendor for an asset that is being considered for disposal. Such surveys are sometimes referred to as divestment surveys. For consistency, the term ‘vendor TDD’ is used throughout this section.

Vendor TDD is commissioned and funded by the owner of a built asset for the benefit of an eventual purchaser. Vendor TDD is sometimes also obtained to help an owner understand the condition of a portfolio to select suitable buildings for sale and may not ever be passed to a third party.

Vendor TDD reports are rapidly becoming the norm in commercial property transactions, but have not been widely accepted in the residential property market. As such, the information covered in this section relates to commercial property vendor surveys only, or multi-unit residential property types (buy to rent (BTR), private rented sector (PRS)) in institutional ownership.

This section is maintained by Chris Gibbons of Tuffin Ferraby Taylor LLP.

RICS standards and guidance: Technical due diligence of commercial property

Feature: TDD: vendor surveys