Due Diligence

Question 1

What due diligence did you under take for this instruction

Answer 1

• Certificate of Title check

Question 2

What is a Certificate of Title

Answer 2

It is a legislative document for the individual unit which states its use class

I however review the Report on Title which contains all the Certificates of Title of the portfolio

Question 3

What do you look for in a Certificate of Title

Answer 3

I value on the basis that the funder is in possession

I look for general disclosures and property disclosures
- Restrictive covenants
- Govt statutory requirements
- S.106 Agreements

Question 4

What is a Mortgage exclusion clause?

Answer 4

Anything that states that the property converts to private use upon being taken over the a mortgage in possession
- Can therefor be valued on the basis of MV-T

Question 5

Why were the properties in this portfolio restricted to EUV-SH

Answer 5

They did not have the correct mortgage exclusion clauses in their certificates of title

Question 6

What is EUV-SH?

Answer 6

The amount for which an asset will be sold on the valuation date between a willing buyer and seller at an arm’s length transaction, assuming appropriate marketing and both parties have acted knowledgably prudently and without compulsion

EUV-SH (additional assumptions)

• That the body lets the property pursuant to the delivery of Existing Use
• That the vendor would only be able sell the property to an organization managing their stock in accordance with the regulatory bodys requirements
• Vacant properties will be valued on the basis that they will be re-let as opposed to being value with vacant possession
• Any subsequent sale would be held to the same values as above

Question 7

What did you notice in the Certificate of Title that could impact value?

Answer 7

Restrictive Covenant
- EUV-SH in to Perp

Question 8

What are the ground for repossession for a Secured Tenancy

Answer 8

Has to be done via court
- tenant has to be in breach