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Due Diligence is No Joke

Due Diligence is No Joke

In a document fragment dated July 1, 1850, Abraham Lincoln has notes for a law lecture which contain this quote: “The leading rule for the lawyer, as for the man of every other calling, is diligence. Leave nothing for to-morrow which can be done to-day.”

Lincoln knew how important it is for those who deal with laws, contracts and public trust, nothing can be left for tomorrow as every moment can count.  That’s true also in the Title Industry. When trusted with ensuring appropriate chains of ownership for what is often a families most expensive investment, every question has to answered and as much clarity brought to the process as possible.

For example: M&M Title is involved in helping yet another family realize the dream of home ownership.  The agent working on the transaction had a few minor questions but ones that shouldn’t be ignored.  With a bit of due diligence and patient work, it came to light that what seemed like a normal sales transaction was anything but!

It turned out the seller of the house being sold was in active Bankruptcy.  This can radically impact a closing and title transaction, so the MM agent reached out to the seller.  Of course, he knew this was happening, but he didn’t want his real estate agent, who was a close family friend, to know this personal information, and he didn’t understand that this would have serious impact on the validity of the closing and the proper handling of lien payoffs and releases.

If you ever wonder why it can take so long to hear “clear to close,” this is one of those reasons.  Sellers and buyers can be unaware that seemingly unrelated, “personal” issues, can impact the key transactional details, or, some may even  knowingly act in bad faith.  That’s why it’s vital to make sure you work with realtors and partners who take Abraham Lincoln’s words to heart and leave nothing for tomorrow.  When it comes to your family home, leave nothing undone and make sure you and your partners in the transaction, act with diligence.

Frank