Legal Due Diligence
Legal Due Diligence is the first step we take to purchasing your property in the B&M Purchasing Process. Legal Due Diligence is the process of completing all the legally required steps to transfer ownership between private parties. This includes checking the available records for all claims against the subject property as well as verifying the Seller’s Authority to transfer ownership of the property. This part of the process is typically called Title & Lien Searches. There are many steps involved in this process.
B&M engages highly rated, real estate specialist law firms with extensive experience running title and lien searches as the Closing Agent for our transactions to ensure things are done right. These firms go to great lengths to ensure a proper and legal sale takes place including visiting the county courthouse or city hall to review records and legal claims against the property. The most typical claims against a property are first and second mortgages, home equity loans or lines of credit, property taxes, liens for judgment, utility bills, etc. As part of our service to you, we work to minimize or eliminate these claims in order to minimize your liabilities and maximize the net proceeds you may receive at closing.
The Closing Agent also verifies the ownership of the property by reviewing all previous owners of the property to ensure valid transfers of ownership occurred. This is typically called reviewing and cleaning the chain of title or custody. This process can sometimes result in unexpected twists and turns but there is rarely a situation the B&M Team and Closing Agents can not successfully resolve. B&M will work to eliminate any title issues that may appear in reviewing the chain of title to ensure the proper and legal sale of your property.
Legal due diligence typically takes two weeks or less but can take several weeks or months depending on the issues that arise during the title and lien search process. While Legal Due Diligence is taking place we typically begin physical due diligence and business due diligence.