It is one of the worst things that can happen to a real estate sales professional — you get to the end of a deal and find out that your client cannot pay for your services.
Now you are stuck with the decision to either take the loss of money and time or to go to court to try to get back the costs — which in itself can be expensive and time consuming.
The better option is to look for potential payment issues upfront with real estate due diligence.
Good real estate due diligence includes verifying all aspects of a client’s claims – including their home equity.
When you first meet with a client, you can run a Parcel Register* to estimate equity.
A Parcel Register* from GeoWarehouse is the property equivalent of a credit report. It gives you is a record of the property description and list of instruments as of the date of the property search.
You will be able to view all registered mortgages, liens, and other financial encumbrances. If any raise a red flag, you can use the registration number to obtain an Instrument Image* to examine it closer.
Once you know the value of the home, you can take away the registered mortgages, liens, and other encumbrances to see what is left over — the available equity. If there is not enough available to pay for your services, you could have a potential problem.
You can also identify if your client is the only legal homeowner and spot risks that your clients may not even be aware of.
A Parcel Register* from GeoWarehouse can give you the confidence to move forward with the deal – or flag potential issues before the deal goes too far.
Access yours today. Call 1-866-237-5937 or visit www.geowarehouse.ca.
*An official product of the Ontario government pursuant to provincial land registration statutes