Title Search and Due Diligence: What Buyers and Lenders Should Check

Chain of Title

Verification of the chain of title over a sufficient period—often at least thirty years or as required by local practice—helps establish that the seller has valid and marketable title. Gaps, ambiguities or missing links should be identified and addressed before closing.

Encumbrance and Litigation

Encumbrance certificates and litigation searches help reveal charges, liens and pending disputes that could affect ownership or enforceability of security. Results should be read in light of applicable law and, where necessary, clarified with the seller or borrower.

Documentation and Compliance

Due diligence also involves reviewing key documents such as sale deeds, partition deeds, and approvals. Compliance with local laws, including stamp duty and registration, should be verified so that documents are valid and enforceable.

This note is for general information only and does not constitute legal advice.