Strengthening Diligence For A Secure Mortgage Lending

Introduction

India's booming real estate market has fueled significant growth in real estate financing, with mortgages on immovable property becoming a preferred and most common form of collateral for both retail and corporate borrowers. Recognizing inherent property risks, lenders conduct a legal due diligence, often through external counsel, who issue a title search report ("TSR") that scrutinizes the title and identifies potential issues. Scrutinizing the title is essential to ascertain the ownership of the property and to ensure that the title is clear and free from any defects, encumbrances and claims. The TSR also includes advice on necessary compliances involved in creating a valid and enforceable charge towards recovery of dues in case of a default by the borrower.