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.

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.

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