Archive for the 'Legal Home Owners' Category

It can be a real estate agent’s nightmare. You’ve taken the time to arrange a great deal for your client who is selling their home… but then they can’t pay you the commission.

Suddenly, you’re out money and time. You could take the client to court to try to recoup the costs, but again that is more money and more time.

Wouldn’t it be easier to just make sure your client is able to pay in the first place?

That’s where this one secret comes in. You will want to be sure this is included in your real estate tool case.

It’s called a Parcel Register*.

A Parcel Register* from GeoWarehouse is like a credit report — but instead of checking a client’s credit score, it checks the property.

It will show you:

  • If any encumbrances exist.
  • The lender the encumbrances are with.
  • When the encumbrances were registered.
  • The registration value of any encumbrances.
  • The legal homeowners and the type of ownership.
  • A history of registered mortgages and liens.
  • And more.

With this tool, you’ll be able to find out from the get-go whether or not the client can pay you and if there is enough equity available in the home for it to be worth your while.

This is vital in today’s changing economy when interest rates are rising, and new mortgage rules are in place. Federally-regulated lenders have to take into account the client’s gross debt service (GDS) ratio — all of the housing related debt they carry — and total debt service (TDS) ratio — the total amount of debt they carry.

However, private lenders that are not federally regulated do not have to do this. So, it could be possible for a client to be securing their mortgage privately and struggling with debt — and you may not find out until it is too late.

That is why it’s always a good idea to get a Parcel Register*. You’ll be able to know more sooner and rest easy knowing that the deal will go through uninterrupted and you’ll be able to get your real estate commission.

A GeoWarehouse Parcel Register* is easy to obtain. Find out more today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

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

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May 21, 2015

legal homeownersA divorce can send folks scrambling. In a perfect world, when people split they would be able to talk through what to do with their assets, but in a nasty divorce especially, where emotions are high and everyone is trying to come out a winner, this is not always possible.

Through marriage, people work together, sometimes over their entire lives, to accumulate assets which include real estate. This is why it is not uncommon that some may do whatever it takes to try to get what is theirs out of the divorce.

A very common occurrence with divorcing spouses is that one may want to sell a property that has the other spouse’s name on it with the hope that if an offer comes in they will be able to convince the ex-spouse to sell – some may even deploy other tactics to provide you with a signed offer.

Avoiding this is simple.

  • When you are considering taking on a new listing, prior to visiting the property, perform a search to confirm who the legal homeowners are.
  • At this point you can contact your client to confirm that all legal homeowners will be at the engagement meeting with identification.

This is the only real way to verify that you are dealing with all legal homeowners – meet them, see them, see their ID. It is a red flag if you uncover that there is another person on title and your client says that they won’t be available to meet in person, but that they can send a copy of their ID and any documents can be faxed to them to sign. As a rule of thumb, if you can’t meet and see ID for all legal homeowners, you may want to pass on the listing.

From time-to-time you may encounter someone that says that their spouse lives out of province or country – in this instance another option is to send the other party to a lawyer in their country to certify their identification and identity.

In the most innocent scenario, taking the extra step to verify who owns a property will mean that you can flag an issue and work through it, or, in the ugliest scenario, prevent blatant mortgage fraud.

Protect yourself and your clients. Use GeoWarehouse to easily find out who is on title. Contact us today at 1-866-237-5937.

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