Liens, Liens, Liens – Which Ones You Can Spot, and Which Ones You Can’t!

It may not happen often, but when it does it can pose closing challenges that can be insurmountable. What are we talking about? Liens!

An unanticipated lien can kill a deal if the homeowner doesn’t have the means to resolve it. The sooner you uncover liens, the better. Once the ball starts rolling on a deal, so much time and expense is expended for all that a solution to quickly uncover liens is paramount for any real estate sales professionals.

Now – there is no magic bullet for liens as there are some liens you can learn about through a simple search and some you can’t! For example:

Construction – if someone has had or is having work done on a property or is building a home a construction lien could exist without it appearing on a Parcel Register*.

Unpaid property taxes – this is a huge one because all taxes must be paid before the property title will be transferred. While a lien may not be formerly registered on title, unpaid property taxes could exist, will be uncovered on closing, and could therefore sabotage a deal.

Condo fee arrears. Like property taxes, if your client has fallen behind on their payments to condo fees, a lien may not be registered but upon the lawyer receiving a status certificate, unpaid condo fees will be uncovered and will have to be paid on closing.

Other liens that will appear on the Parcel Register* include:

• Unpaid tax debts/debts to the government
• Liens registered through the court once a creditor has obtained a judgement
• Condo liens – once registered
• Property tax liens – once registered

You can greatly mitigate a lien going undetected by performing some basic diligence.

Checking the Parcel Register* will uncover most liens. If a lien comes up and you need to communicate more details on the lien to your client you can go a step further and look at the instrument image associated to the registration number of the lien. The instrument image will reveal more details about the lien, such as the contact information of the registrant.

Where condo owners are concerned – we have come a long way since the days of the 10 day condo certificate process. While some condo certificates do still take time to obtain, the process to get them is far simpler. You can now request a condo certificate online and receive it electronically – vs waiting to have that mammoth 100+ page document delivered to you.

Property taxes – you can handle this 1 of 2 ways. You can ask your client to provide you with their most recent property tax statement or you can request one from the tax office directly. Now requesting it from the tax office may include a fee so you may just want to mandate that on all new listings one of the required documents that your client provide be their tax statement.

Taking these simple steps can help you root out more liens and allow your client to address any issues before an offer is extended. Don’t let anything impact a closing.

For more about any of these documents or how to obtain them, please visit www.geowarehouse.ca today.

*An official product of the Ontario government pursuant to provincial land registration statutes.

3 Real Estate Musts You May Not Know are Online -- Survey, Status Certificate, Parcel Register*

When you meet your clients and take them out too see properties, they see one side of real estate – you could say, the sexier side. In all reality, that represents only one aspect of your job as there is the whole back office piece that everyone doesn’t get to see.

Landing a client, or making a sale, leads to a number of agreements, searches, research and more. The faster and more efficiently you can access the information you need to get your work done, the better.

There are some searches or materials you will need all the time and then some on an as-needed basis, so it can be hard to keep on top of innovations that have made it much easier to obtain what you need.

Yes: we are talking Parcel Registers*, surveys and status certificates! While Parcel Registers* have been available online for at least the past 10 years, status certificates and condo certificates have not.

What a pain status certificates have been to obtain historically. Requesting them, paying for them, waiting for them and then retrieving them. Surveys too – you have to call a surveyor, make an appointment, have the survey conducted, waiting for it… not to mention the cost!

Remember those innovations we started this blog talking about? Luckily now, Parcel Registers*, condo certificates and surveys are not only available online, they are also all in the same place!

When logged into GeoWarehouse you can request a survey, condo certificate or Parcel Register* in the GeoWarehouse store. Once your purchase is completed, the requested search or document is available for you electronically.

Wondering how to do this? Here is some help:

1. How to obtain a Parcel Register*: http://www.geowarehouse.ca/marketing/property-ownership-search-parcel-register-on-POLARIS.php
2. How to obtain a condo certificate: http://www.geowarehouse.ca/marketing/condo-verification-online-conduit.php
3. How to obtain a survey: http://www.geowarehouse.ca/marketing/purchase-property-survey-online-in-the-geoWarehouse-store.php

Not a GeoWarehouse subscriber? Visit www.geowarehouse.ca today to find out more.

*An official product of the Ontario government pursuant to provincial land registration statutes.

What is a Property Title Search?

We often blog on this topic because it is a constant source of confusion for many involved in a real estate transaction – mortgage brokers and real estate sales professionals respectively. When many think of a Parcel Register* they reference it as a title search.

A title search is something that real estate lawyers perform. It is a series of searches and documents that are reviewed by the lawyer to certify that title is clear. That said, even a comprehensive title search can miss things, which is why title insurance has become so popular.

However, title insurance can’t prevent your deal from blowing up in your face because something comes up on closing. The Parcel Register* is the aspect of the title search that looks at the history on the property title – making those issues apparent before any real problems arise. A loose example would be kind of like a credit report – but for real property.

Here is what you can learn from the Parcel Register*:

• The legal description of the property and PIN (Property Identification Number)
• Who owns a home at the exact time you perform the search
• The type of ownership
• The history of title transfers, from/to information and names of sellers and purchasers
• Registered mortgages – when they were registered, who registered them and the amount registered
• Registered liens – when they were registered, who registered them and the amount registered and more….

Should something turn up on a Parcel Register*, you can then request an Instrument Image of a particular transaction and view pertinent details, such as the contact information for the registrant to resolve issues that can be resolved.

Sometimes a mortgage can show up on title which is in fact paid off but has not been discharged. When discovered, this type of issue can delay a closing, but if discovered early on can be resolved. Something like uncovering other people on title can enable you to obtain signatures from all legal homeowners. Reviewing registered mortgages may show you that your client doesn’t have enough equity in their home to pay your fees.

The benefits of the Parcel Register* for real estate sales professionals are vast. Here is a sample parcel register that you can review to see the formatting and how easy it is to review.

To find out how to order a Parcel Register* and avoid issues early, before they become major problems, please visit www.geowarehouse.ca today.

*An official product of the Ontario government pursuant to provincial land registration statutes.

The Real Estate Hiccups

As a real estate sales professional, your services present incredible value to the clients you serve. Representing a client in a real estate transaction is a process that involves due diligence and precision. When unexpected occurrences happen on deals, you may experience what some refer to as a hiccup, meaning you can recover, while others may refer to the deal having exploded - meaning there is no way to recover the deal. Either way you look at it, even a hiccup in a deal can lead to great expense – both monetarily and time wise.

The sooner that you can identify potential issues, the more that you can mitigate time and expense wasted.

Sometimes when representing a client, unexpected information can come up, like tax a lien for example. Check out this example:

• Perhaps you have taken on a new listing and the seller doesn’t even realize that CRA has registered a lien on their home in connection with an unpaid tax debt.
• This leads you to do some further investigation so you request a Parcel Register* to see if in fact your client does have a lien registered. The Parcel Register* confirms that yes, only a week prior to the client engaging you to sell their home, CRA did register a lien on the home.
• You report back to your client and they are in a complete state of shock. They had no idea that a lien was registered or the amount that they owed to CRA, or who at CRA to contact, so they ask you for help.
• You then go on to use the Instrument Number associated to the lien in the Parcel Register*, and request the instrument image.
• The instrument image saves you and your client precious time because it provides all the details your client needs to get to the bottom of the issue of the unexpected lien. This information includes the direct contact information for who at CRA registered the lien.
• You are able to relay that information back to your client and they contact CRA.
• CRA agrees to lift the lien on the condition that a lump sum payment is made towards the tax debt.

We can go on and on with stories like this that we hear from real estate sales professionals all the time. What are some of the buzz words in these examples: requested a Parcel Register*, obtained an instrument image, requested a condo status certificate, etc… As a real estate sales professional you are only as good at your job as the tools you have at your disposal. In this day and age you can’t just take someone’s word for something anymore and it is critical to perform checks and balances to ensure that there are no potential hiccups or explosions waiting to bring your deal down.

For more about Parcel Registers* or Condo Status Certificates please visit www.geowarehouse.ca today.

*An official product of the Ontario government pursuant to provincial land registration statutes.

Parcel Register* - Does it Really Even Matter?

What do you think a Parcel Register* is? Many will say they don’t know, while others may say that a Parcel Register* is a title search, which it actually is not. A Parcel Register* is a part of a title search. The Parcel Register* is a record containing a property description and a list of instruments registered against the property within the Land Registration System of Ontario as of the date of the property search. Here is what a Parcel Register* looks like: http://ow.ly/DKbLb.

What can you learn from a Parcel Register*:

• Who is on title to the home – the legal homeowners
• The type of home ownership
• The legal description and PIN (Property Identification Number)
• A history of transfers, charges (mortgages), liens, etc. which includes: the date that the instrument was registered, the instrument number, the date of the registration, the dollar amount if there is one, the registrant’s name, etc…

What can this tell you?

• You can identify if there are other people on title to a property that were not disclosed to you.
• You can identify if there are challenges with equity or surprise information that your client may not have been aware of.
• You can obtain the required numbers to dig deeper if you need to.

So what happens next? If new information is uncovered when reviewing a Parcel Register* you can now report this information back to them and inquire further into any discrepancies. Say for example you or your client wishes to investigate something that appears in the history on the Parcel Register* further, you can take the Instrument Number – this will enable you to pull the instrument image.
The instrument image provides even further detail on a particular registration on the Parcel Register* – like the contact information for the parties who registered the instrument. Some very common examples of instrument images that many real estate sales professionals will look at include: liens, mortgages, transfers and condo declarations.
Parcel Registers* are an important search tool that different professionals leverage throughout a real estate transaction. Because they are current, up-to-the-date of the search, they give you a very accurate snap-shot on the ownership and financial positioning of a particular property. Especially where new listings are concerned, you can greatly mitigate surprises on deals where you represent a seller. A good clean Parcel Register* is actually a sell feature that you can leverage when negotiating a deal with a real estate sales professional who is representing a perspective buyer.
Parcel Register*, doe it really even matter? We think so! For more information about how you can obtain a Parcel Register* please call 1-866-237-5937.
*An official product of the Ontario government pursuant to provincial land registration statutes.

Knowing a Property’s Financial Standing Can Save You Big in the Long Run

This is a topic we like to repeat-blog on from time to time, but with good reason. When you take on a new client, especially in the case of a new listing, you have to vet your new client. You may take steps to verify that your client is the legal owner of the property, or you may perform sales history and ownership history searches on the property. There are many ways that you can perform due diligence.  

In addition, you can also go one step further and verify a property’s financial standing. How can you do this? By purchasing a Parcel Register. In addition to revalidating home ownership information, the Parcel Register will give you insights into a property’s financial standing. 

A Parcel Register will tell you a number of things – here is a short list and why each one is relevant to you: 

·        Any mortgages registered on title, when they were registered and the amounts registered - this will enable you to avoid clients who don’t have enough equity to cover your commission.

·        History of title transfers – you can see when the property was last purchased and for how much in correlation to your client’s expected list price.

·        Any liens on the property – you can identify a property tax lien, a condo lien or a tax lien from the Canada Revenue Agency. Canada Revenue Agency tax liens have been known to prevent deals from closing because often they will exceed the equity available in the property.

Knowing a property’s financial standing helps you do a better job. If issues show up on the Parcel Register you are in a position to ask your client for more information. For example, sometimes mortgages are paid off but don’t get discharged – this can prevent a deal from closing. Knowing this at the point of listing enables you to educate your client about how they can go about gathering the proof to show you the mortgage was paid and also how to go about getting it discharged before you have a deal closing. 

·        If you see that there are mortgages registered that you think are too close to the value of the property, but your client thinks they are less, ask your client for a mortgage statement to confirm the current values.

·        If there is a condo lien – this would have come up with the Condo Status Certificate. If there is a lien from the condo corporation your client has to get you a discharge statement indicating the amount to pay the lien in full.

·        If there is a property tax lien you can ask your client to obtain the current balance by requesting a tax certificate from the municipal tax department.

·        If there is a tax lien from the Canada Revenue Agency the balance will have to be requested by them directly.

Taking the steps to validate a property’s financial standing will save you time and money because no more time will be lost on deals that have underlying issues. 

For more information about how you can research a property’s financial standing please visit www.geowarehouse.ca.

The Importance of Parcel Registers – A $7,000.00 Learning Experience

The Parcel Register search is relied upon for real estate transactions to learn important information about a property, such as ownership and encumbrances. The real estate lawyer will request a parcel register prior to closing because it currently validates:

• Who owns the property
• The type of ownership
• When the property was purchased
• Value of the transfer
• Registered amount of the mortgage
• Any undischarged mortgages registered against the property
• Any liens against the property - property tax, condo liens, income tax, etc.  

The Parcel Register is one of the first property related searches that real estate sales professionals utilise when conversing with their clients.  This will reduce your expenditure in both time and money, and allow for these resources to be allocated elsewhere. For instance, the profit of the sale may be hindered when the necessary information is not disclosed by the client. With the Parcel Register search you will be able to obtain the important information. This will also allow you to avoid the potential risks, which can be detrimental to your profit when a deal has closed.   

A lien or undisclosed mortgage can result in a deal not closing, or the deal will close but there may not be enough equity to cover commission. All things considered, it is a nominal expense to use a Parcel Register to ensure that your deal closes safely.

In a LinkedIn Group that we sponsor, a participant highlighted a very common occurrence that we can learn from: 

A real estate sales professional had a client who had to perform renovations on a property before they could list it - the cost of the renovations was about $7,000. The real estate sales professional extended a loan to the client to pay for the renovations. When the property was sold, it came to light that there were 3 mortgages registered against the property. Once the final balances were sent to the lawyer, there was no equity left to pay back the loan to the real estate sales professional. Fortunately, there was enough equity to pay the commission, which was just slightly less than $7,000.  

This clearly illustrates the importance of obtaining a Parcel Register because if the information was available, the loss could have been avoided.  

Among several other tools provided by GeoWarehouse, we encourage you to utilise the Parcel Register search for your benefit.  

For more information about GeoWarehouse or a Parcel Register please visit www.geowarehouse.ca or feel free to watch this video http://www.youtube.com/watch?v=PCnO80_bRvM about how to request a Parcel Register. 

Innovative Ways that a Property Ownership Search Can Help You be More Efficient!

When representing a client, whether it is a buyer or a seller, the more information you have about a property and its owners, the better. Most real estate sales professionals will turn to a search in GeoWarehouse to get the information they need quickly. A property ownership search can be performed in GeoWarehouse by leveraging different reports and searches to obtain the information that you need.

When requesting a Property Details Report in GeoWarehouse, you will get access to not only the sales on the subject property, but also the property’s PIN (Property Identification Number). Say you want to know how much the subject property is encumbered for, what current owners paid for the home, when they purchased it, etc.  Armed with the property address and PIN, you can request a Parcel Register in the GeoWarehouse Store and instantly identify who is on title to the property, the type of ownership, when they purchased the property, what they paid for it and any mortgages or liens registered.

This can make you more efficient in so many ways:

·        You can validate that the client engaging you actually is the homeowner. What does this mean to you? It means that, if there are other people on title, they are consenting to the sale of the property and that you in fact contract all of the relevant parties.

·        You can learn of encumbrances and liens on the subject property and protect your interests and other closing costs. What does this mean to you? Incredible time savings. You can quickly identify if your deal is in fact a practical deal and address financial shortfalls before investing your valuable time and energy into representing a client.

·        You can identify any prevalent issues that could impact the deal from closing. What does this mean to you? There is nothing worse than being at the 11^th hour on a closing and getting a call from the real estate lawyer advising you that there are issues on title that will prevent your deal from closing. Seeing what is on the Parcel Register will greatly mitigate this and enable you to assist your client to resolve any issues well before your closing date.

Validating property ownership can play a key role in any real estate transaction, and having this information will lead to increased efficiency and a smoother closing.

We want to hear from you. Have you ever had a deal go south on closing because of title related issues?

If you would like more information about GeoWarehouse, please visit www.geowarehouse.ca or call 1-866-237-5937.

GeoWarehouse Store Focus: Top 5 Reports Purchased in the Store and What They are Commonly Used For

The GeoWarehouse Store is available to Real Estate Sales Professionals who subscribe to GeoWarehouse. In the store, Real Estate Sales Professionals can access a vast range of information, searches, reports, certificates, documents just to name a few. This blog highlights the top 5 GeoWarehouse reports that Real Estate Sales Professionals purchase in the GeoWarehouse Store and why.

 

 

Parcel Register                                         

The Parcel Register is a component of the property title search that reveals a property’s ownership information, legal description information and a history of all transfers, mortgages, liens and other encumbrances. Real Estate Sales Professionals use this report to verify who owns a property, what mortgages they have (validate equity), identify issues that could impact the real estate transaction from closing and more… 

Instrument Image

Instrument images provide vital details when an issue is identified in the Parcel Register and further information is required. For example, let’s say there is a mortgage registered on your client’s property by a private lender, a discharge statement is required and no one knows where to obtain it. An instrument image can provide you with the private lender’s information and also the private lender’s lawyer’s information, including contact information. This can enable you to help your client obtain a discharge statement. The same is true if the Parcel Register reveals that a lien has been registered against the property. An instrument image can reveal the registrant, contact information and the amount of the lien. Instrument images are a very useful tool for Real Estate Sales Professionals and can result in significant time savings.

HomeVerified

The HomeVerified Insurance Claims history report can be purchased through the GeoWarehouse store and is an excellent tool to learn the insurance history on a property. Uncovering damage claims can reveal floods, potential electrical problems and more… Through HomeVerified you can also verify if the property you are listing has been used as a grow op.

Survey

Gone are the days of having to order, organize and pay for expensive surveys. Surveys are now available on GeoWarehouse. If a survey for the property is available it can be purchased online, through the GeoWarehouse Store. A digital format will be emailed immediately to you after completing the purchase process.

MPAC Assessment Data

Many Real Estate Sales Professionals turn to MPAC assessment data when they need information like a property’s accurate municipal address and to identify missing information on a transaction. There are a wide range of MPAC Assessment Reports available in the GeoWarehouse Store. MPAC Assessment Reports include information such as current value assessment, property type, site area and unit of measure, year built, zoning, last valid sale date, last valid sale amount, heating type, air conditioning, basement total area, basement finished area, garage type, and garage spaces.

Another very valuable report available through GeoWarehouse, just not through the GeoWarehouse store, is the ability to request condo status certificates on any real estate closing that involves a condo. As a Real Estate Sales Professional you know the act of obtaining a condo certificate is both costly and timely. Condo corporations demanding payment of the fee by certified funds, tight time lines on closings and needing to retrieve the certificate can really make obtaining a condo status certificate a grueling task. Condo status certificates can be ordered. By registering for Conduit through GeoWarehouse and then processing an order. Incorporating these very useful products into your workflow will result in you having more knowledge about your clients and their properties and save you time and money through increased efficiency.

If you would like more information about how you can access the GeoWarehouse Store please visit www.geowarehouse.ca or call 1-866-237-5937.

Whose Responsibility Is It to Perform a Property Title Search?

Every real estate transaction will involve a title search; all parties involved in the transaction (the Real Estate Sales Professional, the mortgage broker, the lender and the real estate lawyer) will require a property title search for different reasons.

Historically, the Real Estate Sales Professional, mortgage broker and lender would rely on the real estate lawyer to perform the property title search, as it is one of their formal responsibilities. The only challenge is that sometimes, when the real estate lawyer performs the property title search, issues can arise that can complicate and delay closing; in some cases, these can even prevent a deal from closing altogether.

Advancements in technology have made relevant aspects of a property title search available to land professionals, like Real Estate Sales Professionals.

GeoWarehouse provides Real Estate Sales Professionals with online access to Parcel Registers which are an integral component of a property title search. Parcel Register data comes from the POLARIS database and is the most current and accurate information of its kind available. Accessing a Parcel Register online saves you an incredible amount of time and provides you with an abundance of information, including the legal description of a property, the property’s PIN, property owners, types of ownership, a history property of transfers, liens, and mortgages.

A Parcel Register helps you uncover issues that may delay, complicate or prevent a real estate transaction from closing such as:

·       Un-discharged mortgages – Too often mortgages that are paid off do not get formally discharged by the lender’s lawyer.  Un-discharged mortgages must be discharged before a future real estate transaction can take place.

·       Liens or encumbrances (property tax arrears, condo fee arrears, construction liens etc…) – liens often come as a complete surprise to sellers and it should be identified if they exist.

·       Other people on title.

·       Lack of property equity – if a seller has no property equity they cannot pay you. Finding this out quickly is important to see if there are other arrangements that can be made for payment, otherwise you may want to pass on the client.

·       Restrictive covenants, easements, and other registrations…

Issues like previously un-discharged mortgages that ended up being paid off can be overcome by obtaining proof and providing it to the lawyer, as can liens that have also been paid off. However, other people on title, who do not want to consent to the sale of the property or insufficient equity to cover real estate and legal closing costs, can stop a deal dead in its tracks.

While it may end up ultimately being the real estate lawyer’s responsibility to perform the property title search, it pays to perform a Parcel Register and identify any potential issues, determine if they can be addressed, and address them long before the transaction ends up with the real estate lawyer. This will lead to higher closing rates, better time management (you will not be wasting time on deals that won’t close), strengthened relationships with partners, as more of your deals will close, and heightened due diligence that will prevent you from taking on clients who are unable to pay for your services.

If you would like more information about how you can obtain a Parcel Register online please visit www.geowarehouse.ca or call 1-866-237-5937.

Attn. Real Estate Sales Professionals: How a Parcel Register Can Help You Do Your Due Diligence

Real estate sales professionals are obliged to conduct due diligence, especially when taking on a new listing. This due diligence includes evaluating both the client and the property. 

On a new listing, you not only want to look at the physical property to ensure that you have disclosed all physical attributes accurately, you should also consider looking at a part of a property title search that is called the Parcel Register.

The Parcel Register essentially provides the history of the property’s title, including ownership, transfers and encumbrances. The Parcel Register is an excellent device that can be leveraged to exercise due diligence when taking on a new client.

o      First of all, the Parcel Register will enable you to quickly identify all legal owners of the property so that you can ensure that all of the right parties are present when you sign off on your contract with them.

o      The Parcel Register will also provide information that should give you an idea of whether or not your client has sufficient equity to pay your fees. You will be able to see when the property was transferred to your client, in what amount, any mortgages registered against the property, when they were registered and the amount that they were registered for. For example, what would you do if you engaged a new client who wanted to sell their home for $350,000 but then upon reviewing their Parcel Register you saw that they purchased the home 10 months ago for $300,000 and have a mortgage tha t was registered only 10 months ago for $290,000? In this scenario, this client may not have the equity they think they do or the ability to pay your fees.

o      The Parcel Register also helps you avoid issues from arising upon closing. The Parcel Register will reveal any liens which could include condo fee arrears, property tax arrears, and construction liens just to name a few. It will also reveal un-discharged mortgages and other items that could cause delays.

Most people don’t intentionally miscommunicate or omit information, but if this happens, it results in an incredible waste of time for all those involved. It causes a complete chain reaction; not only does your time get wasted but so too does the time of the prospective buyer, the buyer’s agent, mortgage broker, lender, real estate lawyer, etc…

Exercising your due diligence at the beginning of a transaction can save you, your client and other parties significant time and expense as problem deals can be quickly identified. There are many issues that come up at the last minute on real estate closings that could be identified much earlier through a Parcel Register. Many of these issues can be overcome through providing the real estate lawyer with documentation as they request it, but knowing and addressing these issues earlier in the process makes closings go much more smoothly.

For more information about how you can obtain a Parcel Register through GeoWarehouse please visit www.geowarehouse.ca or call 1-866-237-5937.

3 Reasons Why a Real Estate Sales Professional Should Request a Parcel Register on Every Deal

As a Real Estate Sales Professional you know that your job involves a lot more than just helping people buy and sell homes. You are also relied upon to perform due diligence (for both yourself and your clients), investigate properties and administer contracts between you and your client and then your client and whomever they enter into a real estate transaction with.

Online real estate tools like GeoWarehouse help you to accomplish these tasks. One very popular search that Real Estate Sales Professionals make in the GeoWarehouse Store is the Parcel Register. The reason this search is so popular is because it helps Real Estate Sales Professionals acquire current, accurate information about a homeowner, their property and their financial standing. 

A Parcel Register is a part of a property title search that provides information about a property and its history. The Parcel Register contains: the property’s legal description, PIN (Property Identification Number), owner(s) name(s), type and percentage of ownership, easements and restrictions on the property, the property’s purchase history, when the property was last transferred, the transfer amount and from/to information, any mortgages registered against a property, when they were registered, the lender and the amount registered, any liens registered against the property, and more…

The top three reasons why Real Estate Sales Professionals should take advantage of a Parcel Register are:

To assess new clients. When a client comes to you to sell their property, your commission and the other agent’s commission will be paid out of the equity in the home. If a seller has no equity in their home because it is fully encumbered then paying real estate commission becomes a difficult proposition. In addition, you want to ensure that you are representing the actual legal homeowners and the Parcel Register will reveal who is on title. Alternately, when representing a buyer, if they can’t get approved for financing on a mortgage then your time spent showing them properties will have been in vain. If you represent them on the sale of their property, issues like property liens and multiple mortgages may be a signal of other underlying financial issues and presents an opportunity to ensure that they have a sufficient down payment and credit to qualify for a mortgage on their next property purchase.

Negotiate better offers. The Parcel Register will show you the registered mortgages on the property, when the seller purchased the property and what they paid. Knowing the seller’s equity position increases your negotiating power because you can assess if they have more financial room or motivation to accept less than the listed price. You can also identify properties where you may have less negotiating positioning and can set your client’s expectations accordingly.

Validate up-to-the-minute information. Because the information in the Parcel Register comes from the POLARIS database it is the most current and accurate information you can access.

The Parcel Register not only makes assessing new clients, negotiating better offers and validating information much easier, it also helps you avoid surprises upon closing. Reviewing a Parcel Register makes you aware of any title related issues that may be problematic.

For more information about GeoWarehouse or about how you can obtain a Parcel Register in the GeoWarehouse Store please visit www.geowarehouse.ca or call 1-866-237-5937.

How to Use a Parcel Register to Better Understand Listings

             

If you work in the real-estate industry you probably recognize the words “title search”. Usually when you hear the words title search in Ontario, what the individual is referring to is a parcel register. A parcel register is a very important part of a title search that reveals very important information about a property’s title and history that is relevant to REALTORS® from both a due diligence perspective when formulating offers, and when educating clients about a listing.

In many cases, the first reaction to a title search is “that’s the lawyer’s job”. While searching registrations on title is a mandatory part of the transaction, the lawyer typically does not access the report until after your client has entered into an agreement to buy or sell the property. In fact, the REALTOR® will often be the only informed professional that clients will consult with prior to committing to the largest transactions of their lives. Let’s take a closer look at each of the ways that a REALTOR® can use a parcel register.

Due diligence - If you are representing a client who is listing a home, the parcel register will reveal mortgages currently registered against title and allow you to better gauge if your client has sufficient equity to cover your fees. What if the registered mortgage is not from a chartered bank, trust company, credit union or similar institution? Standard clauses can require private mortgages to be discharged prior to closing, which may not be possible for the seller. Ordering a parcel register can give you the information you need to modify the agreement of purchase and sale before both parties are contractually committed.

-     Liens on title:  If you are representing a seller in the sale of their home and in the purchase of another you can identify if there are potential credit issues that may prevent them from qualifying for another mortgage.

-     Are there other people on title:  What happens if your client doesn't disclose to you that there is someone else on title? Before you can list a home you must ensure that you have an agreement signed with all homeowners.

The cost of the parcel register is just a small percent of your sales commission. Is it worth it? Ask yourself how much time and money you could potentially spend – performing research for your client, advertising your client’s property, gas expense, etc. – before learning what you discovered by consulting the parcel register could stop a potential sale from occurring.

Formulating offers – the parcel register can be very useful when determining how much negotiating power you have on a deal. Reviewing the purchase date, purchase price and registered mortgages can help you estimate how much equity there is in the home. If your client wants to offer less than the list price you can assess if doing so would have potential to be accepted.

Educating clients about a listing - a parcel register can reveal not just encumbrances but also easements and other restrictions. Knowledge is power and knowing this about a property you have listed or one that your client is considering purchasing allows you to prepare for anything that could come up or that will need to be explained or understood in further detail.

As you can see, incorporating a parcel register into your work flow can add great value to your bottom line and will allow you to not only save time and money but also make you shine with your clients because your clients will know that you are on the cutting edge and going above and beyond the call of duty to represent their best interests.

For more information about how to use/obtain a parcel register please visit www.geowarehouse.ca or call 866-237-5937