One of the best tools in a mortgage broker’s arsenal is a property’s sales history. When it comes to vetting applications, this can reveal a lot to help you mitigate fraud, determine property value, and, ultimately, close more deals.
Finding out the property sales history can tell you:
- Who purchased the property in the past. Were they arm’s-length? Was there any fraud? Were they a corporation?
- What the transfer amounts were. Are they in line with legitimate values?
- If the property has changed hands many times or been passed between related parties.
We wrote before about dealing with innocent client omissions in mortgage fraud. A client omission is one problem, but someone trying to pull the wool over your eyes is something else entirely. A property’s sales history can help you make sure you’re not being swindled.
Other things you would want to look out for are:
- Wide varying sales prices. This could be a sign that the property value has been inflated. If this is the case, you can verify the value by running an AVM (automated valuation model).
- The property’s financial history. Who or what types of encumbrances have been registered?
- The timing of transactions. Too many title changes in a short period of time could indicate a problem.
A property sales history can also confirm all owners on title, which is vital to your application submission.
Often, the property sales history will pass your criteria, but it’s much better to be safe than sorry. If you gloss over a suspicious item and it turns out that there is attempted mortgage fraud happening, then that could be revealed later in the application process — potentially even when it is with the mortgage lender. This would not only have wasted your time, money, and energy, but it could also damage your professional relationships.
Luckily, securing a property’s sales history is easier than ever with Purview. All you need is a property address and you can secure a complete account using data from the Province of Ontario Land Registry Information System (POLARIS). This data is up-to-date, accurate, and easily accessible.
Plus, if your mortgage lenders use Purview, too, it’s the same data they’re looking at, so you’ll know that you’re in alignment, which will save you even more time.
Get started today. Call 1.855.787.8439 or visit www.purview.ca.