Property valuation report is a fundamental part of any property transaction which is widely accepted and referred by the government to solve the legal issues related to the real estate property. Property valuation report is the document prepared by property valuer after the inspection and valuation of the property. The report holds all the necessary information of the property like location, structure building, zoning, quality of material used, condition and type of property, life and value of the property, faults and improvement needed in the property these all done by the property valuer.
Ideally, a lender should release the property valuation report to the client every time, but it is not the case. Lender’s insecurity does not allow them to do so. Because they don’t want the client to know every ins and outs of the property and they don’t want the client to go to another lender.
Property valuation company revealed that – “Some lenders are fine to open the valuation report while some believe in withhold the property valuation report. But sharing the reports lead to having an open deal which benefits all the parties.”
The moneylender is the one who lends funds. It is up to the lender to withhold the property valuation report or not. It is not right to question their authority at any point, as it is their right to do as they wish, want and desire. However, Keeping valuation report confidential from clients is not a great idea or practice.
The Valuation reports are designed to provide detailed information and complete transparency related to the property to those who are involved in the transaction of that particular property. Lenders aren’t interested in revealing the property valuation reports just to avoid external influence and to have complete control over it.
It is vital for clients or borrowers to remember that a valuation report has undertaken by a lender for their assurance and protection. So it completely depends up to the lender to choose whether to disclose the information or not.
A property valuation report gives the lender’s mind a piece of assurance. If the real estate builder has roughly estimated the real estate property value or try to exaggerate it or over or undervalued the cost of construction, the property valuation is to alert them with the exact property value estimated by property valuer and allowing the property lender to form the decision by keeping the value as a reference.
Usually, it is found that the difference between the lender’s valuation figure and the borrower’s property value creates the misunderstanding between the two whether due to miscommunications or cause of insufficient data.
It is suggested that – Builder or developer should not rely upon the lender’s property valuation report. Because it depends upon the lender’s wish. Better to hire your own property valuer who works in you favor and thus you too can know all about the property.
Feel free to contact us. Our experienced property valuers are always ready to guide and assist you.