Property valuation reports play a vital role in property transactions and are widely recognized and relied upon by the government to address legal matters related to real estate properties. These reports are prepared by property valuers after thorough inspections and valuations, providing essential information about the property, including its location, structural details, zoning, materials used, condition, type, lifespan, value, and necessary improvements.
Ideally, lenders should provide clients with property valuation reports for transparency and informed decision-making. However, this is not always the case, as lenders may have concerns that prevent them from sharing these reports. They fear that clients having access to all the details may seek alternative lenders, disrupting the current business relationship.
Property valuation companies have revealed that while some lenders are comfortable sharing the valuation reports, others prefer to withhold them. However, it is important to note that sharing the reports can contribute to more open and mutually beneficial deals for all parties involved.
As the lenders are the ones providing the funds, it is within their discretion to decide whether to withhold or disclose the property valuation report. While it is not appropriate to question their authority, keeping valuation reports confidential from clients is not considered a best practice.
Valuation reports are designed to offer comprehensive information and transparency to all stakeholders involved in the property transaction. Lenders may opt to withhold the reports to avoid external influences and maintain control over the process.
Clients or borrowers should bear in mind that valuation reports are undertaken by lenders to ensure their own assurance and protection. Therefore, it is entirely up to the lender to determine whether to disclose the information or not.
A property valuation report provides the lender with reassurance. If a real estate builder has inaccurately estimated the property value, exaggerated it, or undervalued the construction costs, the valuation report serves as a reference, alerting the lender to the actual property value determined by the property valuer. This allows the lender to make informed decisions based on accurate information.
Misunderstandings between lenders and borrowers often arise from discrepancies between the lender's valuation figure and the borrower's property value, which may be due to miscommunications or insufficient data.
It is advisable for builders or developers not to solely rely on the lender's property valuation report, as it is subject to the lender's discretion. Engaging your own property valuer who works in your best interest will ensure that you have comprehensive knowledge about the property.
If you require guidance or assistance, please feel free to contact us. Our experienced property valuers are always ready to provide support and advice tailored to your needs.