April 17, 2018 – PropLogix, a property research company, has surveyed hundreds of title industry professionals about their due diligence practices and compiled the findings in a report.
The report focuses on the due diligence research that goes beyond the traditional title search for a property, extending into municipal debt, land surveys, and community association research. The company says the driving force behind creating the survey and resulting report was the wide differences in the scope of work done to research a property to protect homebuyers from potential risks before closing.
“More and more we’re finding huge differences in the standard of due diligence practices throughout the title industry — whether it be title companies, or real estate attorneys, big offices, or small offices, in the southwest, or in the Midwest — there is little-to-no industry-wide standard,” explained PropLogix CEO, Jesse Biter.
The initiative aims to bring to light these difference to allow other real estate closing professionals a glimpse into what others are doing, in other states, or down the street.
“There are certain differences in what companies are doing, like with unrecorded municipal debt, that really depends on where your closings are located and whether or not it’s necessary, or commonplace. But we see wide variations with people that make a standard practice of ordering surveys, for example, that are even in the same county,” said Biter.
“Basically, we were really curious and we know others in the industry are, too.”