Limited Title...help

Discussion in 'Loans & Mortgage Brokers' started by YLN, 4th Mar, 2020.

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  1. Morgs

    Morgs Well-Known Member Business Member

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    They are always going to say this because it is matter of fact. Perhaps the right questions to ask may be along the lines of if they have settled limited title transactions before... and if so which lenders they see funding these transactions.
     
  2. YLN

    YLN Active Member

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    Thanks for that, sorry to keep asking the same question, but does that mean there’d be no way to protect my 0.25% deposit?
     
  3. Morgs

    Morgs Well-Known Member Business Member

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    I think you're stuck in a loop around the deposit... :)

    Maybe this can help you look at it differently.... Do you definitely want to purchase the property?

    If so, you negotiate a price with the agent/vendor and come to agreement on terms and price and then get the ANZ branch to order the valuation with a signed contract.

    If the valuation comes in short (statistically usually doesn't if being sold on market by REA and isn't vacant land, remote postcode, etc), or if the valuation flags as an unacceptable security type then go to a lender who can do limited title. It can be done.

    Things you can do to mitigate the potential risk:
    - Go for 10 days cooling off instead of 5 days
    - Longer settlement in case of finance issues
    - Ensure you've got an appropriate deposit buffer if the valuation comes in short
    - etc
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    At the end of the day 0.25% of $1,000,000 is $2,500 but not a massive amount.
     
  5. bmc

    bmc Well-Known Member

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    a bit late to the party, but how did you go with this,

    this wouldn't be for a plan of redefinition.
    removal of a qualified caution maybe ? not sure, need more info.
    if your still chasing this one kindly PM me who you spoke to and i will follow up

    bit of a worry, was he straight out of school ?
     
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  6. YLN

    YLN Active Member

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    probably my inexperience in explaining it and interpreting his response.

    was all booked in for a land identification survey today with Wumara and then the realtor called and advised the vendor has gone cold because of this COVID-19....I get it...but I would’ve preferred to work with her and negotiate a longer settlement if the rush and uncertainty is what’s worrying her.
     
  7. bmc

    bmc Well-Known Member

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    ok this is a bit closer to the quote. (although a little cheap)
    a surveyors "title identification report" (NSW term)

    for the record this will show the lot dimensions by deed description and if old system indicate any excess or shortages evident. all improvements on the lot. any encumbrances, easements, encroachments etc.

    this will not remove the limitation. only a full survey plan which is lodged with LRS will. which is probably more like the $5k to $10k amount. however it may satisfy the lender that there is no major risk
     
    Last edited: 24th Mar, 2020