TerenceParticipant@tongthfJoin Date: 2017Post Count: 2
I am in the process of obtaining finance for a house and land package and my broker has advised that the lender cannot provide formal approval because the land has not been titled and therefore a bank valuation cannot be performed. On the other hand the agent who facilitated this house and land purchase is saying that the valuer can value the land even if the title has not been registered. The land has been pegged and allocated a lot number. The others who have purchased in the same estate were able to obtain a valuation without any problem and the developer can provide access to the site.
Could anyone share some insights as to whether a land without title can or cannot be valued for the purpose of obtaining formal approval for finance?
Thanks!TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
Yes the valuer can access and do the valuation. But to get formal approval the titles really need to registered as otherwise what do they put on the mortgage documents.
I got a valuation for a client the other day for a subdivision that hasn’t been registered yet.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
As Terry noted – it’s possible to get a val done before registration – to make sure finance is all lined up so formal can be issued once registered – but you’re not going to get to formal approval and docs issued until it’s completed.TerenceParticipant@tongthfJoin Date: 2017Post Count: 2
Thanks Terry and Corey! I asked another mortgage broker and she said the same thing. It’s good to have experts around.Ethan TimorParticipant@ethantimorJoin Date: 2016Post Count: 282
Agree with the above.
If I were you, I would aim at getting ‘conditional approval’ where the only condition is the title being registered. Such an approval is usually good for 3 months and can be extended as needed.
This should provide you with sufficient peace of mind I hope? 👍😎