Following the completion of a property title search, our law firm undertakes—upon consultation and written agreement with the client—the preparation of a Title Due Diligence Report for the specific property. This report is a legal document that records in detail the findings of the title check (such as transfers, encumbrances, mortgages, liens, etc.). Its purpose is to verify and analyze ownership titles and other rights in rem associated with the property, and it provides written and signed assurance to the client or prospective buyer regarding the property’s legal status, with full legal responsibility assumed by our office.
The attorney who prepares the Title Due Diligence Report undertakes, among other things, responsibility for the following:
- Comprehensive Title Examination: The attorney conducts a thorough and detailed review of all deeds and records relating to the property (e.g., contracts, entries in the Land Registry or the Mortgage Registry) and provides written and signed confirmation of the validity of the property rights.
- Complete Ownership History: Upon specific and written prior agreement with the client, the report may include a full record of the property’s ownership history, typically covering at least the past sixty years—or more, if necessary.
- Identification of Legal Issues or Disputes: If any legal issues or disputes are discovered (e.g., unclear mortgages, missing registrations, pending litigation), these are clearly stated in the report.
- Assurance of Legality and Validity: The attorney ensures that any upcoming transaction (e.g., purchase or sale) will be conducted lawfully and without legal flaws or deficiencies that could jeopardize the process.
- Full Responsibility of the Signing Attorney: The lawyer who signs and submits the Title Due Diligence Report assumes full responsibility in case any issues or defects are overlooked or not reported.
- Complete Legal Safeguard for the Client/Owner: The client—property owner—who holds a written and signed Title Due Diligence Report from a lawyer at our firm is fully protected with respect to the legal status of the property.
The drafting of a Title Due Diligence Report is of particular importance, as it protects both the buyer and the seller from potential legal conflicts and disputes and ensures the smooth completion of a property transaction
