The importance of a title search
An essential part of the due diligence process is to ensure that a purchaser is buying a good, clear title. This means that purchasers must ensure a vendor is the legitimate owner of the property before they sign a contract. It also means that they need to be aware of any encumbrances; claims that are held over the property.
A title search is imperative. This will inform a purchaser:
The prudent investor will be well advised to measure the land to check that the dimensions on the certificate of title are accurate. If there is any doubt, a surveyor should be engaged to check the boundaries. The purchaser also needs to ensure that any existing mortgages held over the property can be discharged and any caveats are withdrawn.
|Look at the example Certificate of Title, and identify: