Every real estate transaction involves a homeowner. Most real estate transactions also involve a real estate lawyer, mortgage broker or agent and/or real estate sales professional or broker. The question is, do all 3 need to verify home ownership information?
For real estate lawyers, the reason for verifying home ownership information is clear: the real estate lawyer is charged with the task of closing the legal aspects of the real estate transaction, including transferring title. Generally, lawyers are paid by retainer from the client and so, when verifying home ownership information, if something is amiss, they are paid regardless.
For mortgage brokers and agents, knowing who is on title is critical because often they are not paid until their deal closes and they receive payment from proceeds of the mortgage or from the lender to whom they refer the mortgage. If there are other people on title, they stand to waste an immense amount of time.
If you are a real estate sales professional, the same is true for you. Often you are the first to encounter the client in the process of undertaking a real estate transaction at it relates to the purchase or sale of a home. Like mortgage agents and brokers, you are likely paid for your work from the proceeds of the seller’s home. You benefit from having higher closure rates, and not having deals implode because information was omitted by a client on either side of the transaction.
As a real estate sales professional, when performing due diligence on a real estate transaction we recommend taking the following steps:
- Verify who your client is – you can do this by asking for identification and then, if they are a seller, checking their name against whose name is on title.
- Verify that the seller has the equity to pay your fees.
- Investigate the property being purchased or sold and determine a fair list price/offer with your client.
In terms of taking the above 3 steps quickly and efficiently you can achieve all 3 by:
- Requesting a Property Details Report in GeoWarehouse and/or;
- Purchasing a Parcel Register in the GeoWarehouse Store.
Taking these steps will mean that you will know more about your client, prevent fraud, close more deals, thereby leading to stronger relationships with banks and other mortgage lenders and also your clients. Verifying home ownership is your first step towards increased profitability.
For more information about how you can verify home ownership information please visit www.geowarehouse.ca or call 1-866-237-5937.
