Steps to Bridge capital investor’s precautions to inspect property of investee

Written By Steps To Faculty Published July 21st, 2010

Bridge capital is helpful to anyone looking for a short-term loan while they renovate their property or prepare to sell it. however, like with all other types of loans, caution is key. Many investors and investees were taken in the recent credit meltdown because each did not consider the following issues. Take a look.

Step 1 Look at the title

The first and foremost precaution is to inspect the title of the investee in respect of property under consideration. The investee may or may not be the absolute owner of the property. There is also possibility that investee’s rights to the title are conditional or limited. This establishes the power of investee to mortgage the property in favor of bridge capital investor. The relevant documents to be inspected for establishing the respective rights are as follows: for the rights as purchaser – sales deed, for inherited property – revenue records and the title of predecessor, for partitions – the deed of partition, for gifted property – gift deed, and for settlement property- the settlement deed.

Step 2 Find a competent surveyor

The investor must get the verification of property from a competent surveyor in respect of survey number, location, and boundaries the property. Visit surveyor.com to find one near you.

Step 3 Confirm the building license is valid

Ensure the verification of building license, if any, latest council tax receipt, and building completion certificate. These verifications are important to ensure the continuity of business at the premises under consideration.

Step 4 Check the land use certificate

If use of land has been changed, the lender must examine the land use change certificate issued by authorities in order to ensure that the land use is conformity with business of investee. Otherwise it will be difficult for investee to carry the business at the same premises.

Step 5 Review the time

The loaner should seek a non-encumbrance certificate relating to property for a period from the date of acquisition of property by the investee till up date, and search that certificate is properly issued by authorities.

By taking these extra precautions, you will ensure you get your money back. Please visit stepsto.com for more great business advice.


Roger Due

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