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Due diligence is an investigation of a business or a person and this is done prior to signing a contract, or a certain act with a certain standard of care. It can be a legal obligation, but the term itself will more commonly be applied to voluntary investigations.

 

Here are the different types of due diligences in Canada:

 

BANKRUPTCY SEARCHES

This type of due diligence search provides a bankruptcy search on any individual or business in Canada. The search result will show if the individual or business has claimed bankruptcy.

 

BANK ACT SEARCHES

This type of due diligence search provides a summary of any liens for equipment or goods providing a bank with a preferential lien against an individual or a business. Banks lend money to retailers, dealers, shippers or wholesalers, and the agreements entered into between a bank and the borrower relating to such loans will be shown on a Bank Act search.

 

BUSINESS AND CORPORATE NAME SEARCHES

This type of due diligence search will provide you with a summary of the information such as the public record for a business or a company including share companies, sole proprietorships, not-for-profit companies, partnerships, and even operating trade name registrations. The registered office address, the names and addresses of officers, previous names of the business or company, incorporation dates, and in some cases, even the owners’ names will be included in this search.

 

LITIGATION SEARCHES

This type of due diligence search will give you a list of all ongoing court cases in a certain jurisdiction for an individual or company. Court cases can be from any city, so it is essential to determine the most likely place where actions were started for an individual or a business. Copies of the court documents can also be obtained.

 

CERTIFICATES OF STATUS OR GOOD STANDING

This type of due diligence search provides a certificate which confirms that a certain company is in good standing with its corporate filings. These are issued to partnerships or sole proprietorships. For you to be able to determine if those entities are in good standing, a business name search should be performed instead to confirm the registration of the partnership or sole proprietorship is still active.

 

PERSONAL PROPERTY SECURITY SEARCHES (PPSA)

This type of due diligence search will provide you with a summary of liens and registrations under the provincial Personal Property Securities Registrations Acts in provinces you are interested in. These searches can also be performed on any individual or business. The search results will show outstanding loans from banks, for motor vehicles, for equipment, etc.

 

If you have more questions regarding due diligence searches, visit our website today or contact us at 1.888.498.4500 for more information.