The next step is for Bransgroves Lawyers to perform legal due diligence. This involves a large number of searches and scrutiny of searches, scrutiny of the executed documents and scrutiny of the identification documents.

Some of the legal due diligence performed is determined by the outcome of searches, for example if a search reveals that a property is held on trust then requisitions are made and searches performed in relation to that trust.

Some of the legal due diligence performed is determined by the scenario. For example if the advance funds are to be used to pay a debt, or buy equipment, then enquiries are made to determine the veracity of those purposes and to ensure the money is going to go where it is supposed to go.

Unlike broker due diligence and lender due diligence which focus on:

  1. the scenario, with particular emphasis on its veracity and the viability of the proposed exit strategy, and

  2. the value of the security offered.

legal due diligence focuses on:

  1. Ensuring good title to the security is obtained;

  2. Ensuring the security is the correct property;

  3. Ensuring there is no identity theft fraud;

  4. Ensuring there is no fraud on the outgoing mortgagee;

  5. Ensuring there is no fraudulent misappropriation of the advance funds;

  6. Ensuring there is no