Managing the Process: Critical Information for a Title Review
A title review is an important aspect of commercial real estate operations to help identify potential issues, risks, or concerns before the final closing process. The review is based on documentation that is connected to the property such as mortgages, tax sales, deeds, litigation, etc. – as well as a list of all the owners of the property, the length of ownership, and the transition dates. Obtaining all of the pertinent information on the property, then distilling it down for critical information, is necessary for actionable items and successful deals.
Here is the high-level process for a title review:
- Survey Receipt: After receipt of the survey (which covers the property), a review of the survey in relation to the description of the title commitment (legal description) is done to try and discover any discrepancies.
- Document Receipt: Locate all relevant documents that are found on the title commitment for the property, then collate and confirm receipt and legibility.
- Document Review: Review all documents for any consents necessary to be obtained for the sale of the property ie. mortgages, deeds, etc.
- Issue Resolution: Assess and analyze any potential issues involving the physical property itself such as encroachments, right of ways, encumbrances, floodways, and parking spaces to align with the zonal requirements that are noted on the survey or in the The Planning and Zoning Resource reports (PZR).
- Report: Draft a final checklist of unresolved items for review and what specific steps are necessary to proceed with the deal.
When preparing title review, you should always keep the audience in mind, avoid legal jargon, and present information in a simple, straightforward manner with actionable items in place.
Baer Reed real estate due diligence services can provide efficient and quick turnarounds to keep any deal moving forward in a timely fashion. Contact us today to learn more.
- On August 13, 2020
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