Sometimes referred to a short sale, it has been a situation that I’ve had to deal with on at least a few occasions in the last few weeks. A property is marketed and sold and just before closing we receive a letter from the Seller’s solicitor or the Co-Operating Broker’s office, that the Seller doesn’t have enough funds to close the transaction. In every instance, the seller’s mortgage amount is more then the sold price of the property. When this happens, it leaves behind a frustrated Buyer, Mortgage Company and at least two Brokerages. Sometimes, it’s even a huge surprise to the Seller.
It is imperative and mandatory under our TREB and RECO rules that the listing agent make sure that every reasonable effort is made to verify all information when it comes to the sale a property. This is not limited to square footage, room measurements and lot size but also how much is outstanding on the mortgage and if the property will be able to close.
In the event that a Seller refuses to allow the Realtor to verify this information, it should be noted and the Seller should sign that this request has been made available and refused. Agents and Brokerages must protect themselves from liability and this is why we include it in every Listing package for our agents. A copy of the Mortgage Verification Form can also be found in Web Forms of Realtorlink or click here for a copy.
Tim Syrianos
RE/MAX Ultimate Realty Inc., Brokerage
Filed under: Home Buyer tips, Home Seller tips, Toronto Market Watch Tagged: | Toronto Market Watch
