- An independent valuation of the property is mandatory by the banks’ empaneled valuators.
- The finance amount is calculated by the lender based on the valuation amount provided by the valuator.
- In some cases, the valuation price can be lower than the sale price which essentially means lesser financing and higher down payment.
- In order to avoid such a situation; one must include an exit clause in the MOU to mitigate such risk which could also protect the buyer from losing their initial deposit in case the buyer falls short of the expected financing amount.
- Market value ascertained by the valuators excludes transfer, brokerage fee, removable of goods and furniture.
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