Due diligence search checklist
“Run full diligence” means different things to different attorneys. A short scope for each party turns that instruction into an order that can start today.
For each party, capture
- Exact legal name, plus any prior names or trade names to include
- Entity type and state of organization, or state of residence for individuals
- Jurisdictions: state of organization, principal place of business, and any county where assets or real property sit
- UCC searches, state and county level
- Federal and state tax lien searches
- Judgment lien searches
- Litigation searches: which state courts, and whether U.S. District Court and U.S. Bankruptcy Court are included
- Date range for litigation and lien searches, if the attorney set one
- Good standing certificates needed, and in which states
For the matter as a whole
- The closing or funding date
- Whether copies of every hit are needed, or a summary only
- How results should be organized, if the attorney has a preference
- A client or matter number for billing
Avoid vague shorthand
“Full searches,” “the usual,” and “standard diligence” are the most common sources of rework. They can mean anything from one state UCC search to a dozen searches across three states. A one-line list per party takes two minutes and prevents a second round of ordering days before closing.
Example scope
| Party | Jurisdictions | Searches |
|---|---|---|
| Borrower, Delaware LLC | Delaware SOS; Arizona SOS; Maricopa County | UCC, federal and state tax lien, judgment lien, litigation (state and federal), bankruptcy |
| Guarantor, individual | Arizona; Maricopa County | Judgment lien, federal tax lien, litigation, bankruptcy |
This is an illustration of how to write a scope, not a recommendation of what any transaction requires. Your legal team decides the appropriate scope.
Have a search or filing due this week?
Send it now. A person confirms scope, cost, and timing the same business day.
orders@legacysearchfile.com