A charge is a requirement against a property by a party that is not the owner. A charge can affect the portability of the property and limit its freedom of use until the charge is removed. The most common types of charges apply to real estate; These include mortgages, relief and property tax duties. Not all forms of burden are financial in nature, as relief is an example of non-financial expenses. A charge can also apply to people, unlike real estate. 9. The seller cannot sell to third parties after the execution of the sales contract. In this case, the seller/buyer agrees to sell/purchase the property at a later date if all the conditions set out in the „sale agreement“ are met. A sale agreement has the terms agreed between the seller and the buyer. An intrusion occurs when a party that does not own the land enters the land or enters the land, for example.

B by building a fence over the boundary of the land (a path of transgression), or by planting a tree with branches hanging on adjacent land (a nuisance). An intervention carries a burden on both lands until the problem is resolved: the property in which the intervention is located has been burdened by its free use, while the owner of the invasive improvement is not entitled to the land on which it was built. A rental agreement is a lease of a property at an agreed price and period. This is a form of charge because the owner does not abandon the property, but its use of the property is greatly limited by the rental agreement. In Hong Kong, for example, the seller of a property is legally required to inform the real estate agent of any charges to the property in order to avoid future problems in the sale process. The real estate agent makes available to the buyer a land search document containing a list of all charges. It is important, from the buyer`s point of view, to know all the charges on a property, as these are often transferred to him at the same time as the ownership of the property. The seller transfers ownership from buyer to seller. Charges are often defined as any claim against a property that limits the portability of the property, or claims that weigh or limit an asset. In the event of an acquisition, these receivables will have a final effect on an asset by reducing the value of what is provided.

However, some charges are considered eligible under the provisions of the EPI and are listed in the „Authorized Charges“ section. Eligible expenses include all expenses that may limit assets, while assets remain marketable (acceptable title) for assets. Generally, these expenses are considered „normal transactions“ as long as the expenses do not reduce the net or net shares of revenue defined in the contractual terms. Authorized charges should not be considered defects in a due diligence audit. Checking and understanding the conditions of the EPI and the definitions contained in it are the first steps to conduct a successful review of the acquisition.