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.

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.