Risk factors

Probability of occurrence

Low level

1 - 3

Medium level

4 - 6

High level

7 - 9

Legal risks

Possibility of ownership loss

3

The possibility of recovering losses due to legal errors at the conclusion of contracts

6

The possibility of third-party claims

4

Unidentified encumbrances of real estate

3

Errors in the cadastral documents

2

Administrative risks

The probability of an increase in the real estate/wealth tax rate

4

Emergence of new requirements by local public administration

4

Adoption of limitations in functional use (e.g. prohibition of use for production purposes)

3

Adoption of limitations in the access ways to the property (e.g. pedestrian access only)

4

Macroeconomic risks

Political decisions that condition the increased spending

8

The reduced pace of economic development

6

Unfavorable economic and financial policy of the Government

8

Rising inflation

9

Unfavorable conditions for mortgage lending

6

Total risk

11

34

25

Number of factors

14

Risk level (weighted average method)

5.0