In one sentence
Confirmation that the property's tax parcels match the collateral and that taxes are current.
The longer version
Verifying tax parcels ensures the loan covers exactly the intended land, no more and no less, and that no delinquent taxes threaten priority. Mismatched parcels are a surprisingly common title issue.
Parcel and tax verification are diligence items that intersect with title, survey, and the legal description.
Common questions
- What is tax parcel verification?
- Confirmation that the property's tax parcels match the collateral description and that taxes are current, often supported by a tax parcel endorsement.
- Why does tax parcel matching matter?
- Because a parcel that includes land outside the collateral, or collateral split across parcels, can cause tax and foreclosure problems.
- What is a tax parcel endorsement?
- A title endorsement insuring that the land is assessed for taxes as a separate parcel or parcels and not combined with other land.
Keep reading
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The commercial loan closing processThe five stages from term sheet to funded.
- Commercial loan softwareWhere this sits in the lending stack.