3 Red Flags On A Property You Can Spot When Using A Parcel Register
As industry professionals, you know the risk that comes with not completing your due diligence when it comes to understanding a property. For real estate agents and brokerages, a lack of due diligence can lead to a deal falling through, an upset and angry client and sometimes fraud. For developers and investors, it can mean dedicating your time and money into an opportunity, only to have red flags come up that jeopardize the deal – and your investment.
Regardless of your profession, everyone knows the importance that completing your due diligence can offer your business, which is why the GeoWarehouse store offers a Parcel Register. Parcel Register* offer critical property data that can verify homeownership, reveal undischarged mortgages or liens, and even reveal a property’s past and highlight some red flags that may impact the purchase and sale of a property. To help you better understand how you can leverage this tool in your business, here are the top 3 red flags you can spot when using a Parcel Register.
There’s an existing mortgage on the property
Using a Parcel Register provides insight into what mortgages are currently registered against the title of the property and will also reveal any undischarged mortgages, undisclosed mortgages, and discrepancies in mortgage information provided by the client. An undischarged or undisclosed mortgage can be a red flag and impact the sales process.
There are liens on the property
Using a Parcel Register can identify if there are existing liens on a property, including condo fee arrears, property tax arrears, and construction liens. If you do uncover a lien and want to gain even more insight, requesting an Instrument Image*, which is available in the GeoWarehouse Store, will provide you with more information on the registered lien.
Identifying liens on a property is important prior to the transaction process – often, undisclosed property liens or other encumbrances such as easements can take days, or even weeks, to resolve the problem, which can severely impact your deal coming to a close. As a real estate professional, you can access the Parcel Register report to ensure this goes smoothly and to further avoid any protentional issues and to guarantee your relationship with your client remains strong.
The seller is not the legal homeowner
By leveraging the information contained in the Parcel Register*, you can validate if your client is the legal homeowner. This is particularly useful when you’re working with a new client. If your client is not the legal homeowner, this can be a signifier of a bigger issue, such as fraud.
As a real estate professional and a trusted advisor, the Parcel Register provides you with the property information you need to complete your due diligence and provide peace of mind for your clients as they purchase a new property.
To learn more about Parcel Registers, please register for an upcoming training session, where our dedicated experts provide you with the tips and tricks to leverage this important and critical information in your business.