Investigation of Title is the legal due diligence process carried out by a solicitor to assess the quality and status of a property’s legal title. It involves reviewing the Land Registry entries, historical deeds, rights of way, covenants, easements, and any encumbrances affecting the site. This process ensures that the borrower has marketable title and identifies any legal risks that may affect the lender’s security. In property development finance transactions, a thorough investigation of title is fundamental before drawdown, acquisition, or granting of any security interests.
In practice, the investigation of title forms a key part of the wider Property and Title Related due diligence process undertaken before a lender commits funds to a development project. The findings can influence lending terms, security requirements, and, in some cases, whether a transaction proceeds at all. Issues such as restrictive covenants, access rights, ransom strips, or title defects may affect development viability and require resolution before completion or drawdown. The results of the investigation are often summarised and confirmed through a Certificate of Title, which provides the lender with formal legal confirmation that the property offers suitable security for the proposed finance facility.
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