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GLOSSARY
BANKRUPTCY SEARCH (K17)
A bankruptcy search is a mandatory search carried out by the buyer’s conveyancer against a buyer’s name prior to exchange.
Its primary purpose is to ensure that the buyer has not become subject to recent bankruptcy proceedings or insolvency measures. If a buyer becomes bankrupt, their legal capacity to hold property or secure a mortgage is immediately compromised.
Conducting this search before the transaction becomes legally binding protects the mortgage lender and ensures that the legal title can be transferred cleanly without third-party insolvency claims interfering.
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