| gen. |
due diligence (1) An internal analysis by a lender, such as a bank, of existing debts owed by a borrower in order to identify or re-evaluate the risk. 2) An independent analysis of the current financial state and future prospects of a company in anticipation of a major investment of venture capital or a stock-exchange flotation. OF&B Alexander Demidov); legal review (Alexander Demidov); title search (A report prepared by a title insurance company that indicates the ownership and outstanding liens for a designated parcel or parcels of real property. Even though a title search is prepared by a title insurance company, it does not offer any insurance protection. Also called ownership and encumbrance reports. American Banker Glossary. In real estate business and law, a title search or property title search is the process of retrieving documents evidencing events in the history of a piece of real property, to determine relevant interests in and regulations concerning that property. In the case of a prospective purchase, a title search is performed primarily to answer three questions regarding a property on the market: Does the seller have a saleable interest in the property? What kind of restrictions or allowances pertain to the use of the land? These would include real covenants, easements and other servitudes. Do any liens exist on the property which need to be paid off at closing? These would be mortgages, back taxes, mechanic's liens, and other assessments. A title search is also performed when an owner wishes to mortgage his property and the bank requires the owner to insure this transaction. WK Alexander Demidov) |
