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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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Property - how is best way to perform 'due diligence" - ie:

Customer Question

For action property - how is best way to perform 'due diligence" - ie: how much is owed on loan, are there any liens, back taxes, etc... BEFORE you offer a price at auction?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

Purchasing property at an auction is always a risky venture as you can never be assured that you have all of the information that you identified.

However, you can minimize this risk by paying for a formal title search from a title company (such as Old Republic, First American, or Chicago Title - the three major title companies nationwide), which will give you a list of liens against the property as well as the status of the title that you are buying and any other liens that may exist.

This will help you identify who has an interest in the property, but the dollar amounts are not always accurate as the information is taken from the county assessor's office, not the creditors (so do take the dollar amount of the liens "with a grain of salt" as these amounts may be higher or lower, sometimes significantly).