Can the Seller Pay Your Real Estate Commission? Here is One Way to Find Out!
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.