Due Diligence and Title Search
Objectives
- Read a registry report
- Identify liens and encumbrances
- Report findings to a client
Explanation
A title search checks owner, area, liens (gravámenes), encumbrances (afectaciones), annotations (anotaciones) and easements (servidumbres). Distinguish: a 'mortgage' (hipoteca) is a lien securing a loan; an 'easement' gives others a right over the land. Also check zoning, maritime zone restrictions (Zona Marítimo Terrestre) and environmental limits.
lien
A legal claim on property securing a debt.
“There is a lien in favour of the bank.”
encumbrance
Any right or restriction affecting property.
“The title is free of encumbrances.”
easement
A right to use another's land for a specific purpose.
“Neighbours have a right-of-way easement.”
annotation
A note in the registry warning of a pending matter.
“There is an annotation of a lawsuit.”
maritime zone
The coastal strip regulated by special law (ZMT).
“Maritime zone land is held under concession.”