Question on property/road reserve

[Yattokame]

Hi all,

 

Have a question on the above.

 

Lawyer found that part of the land of the project is under "Road reserve".

 

What are the implications of this? The valuation? Subsequent perceived value?

 

Thanx

[Zuoom]

the banks would probably take that into consideration when doing their evaluation. ie: risk factor.

as a result, might quote lower, or offer a lessor amount of quoted value.

 

i would believe your land is near a main road or junction.

[Joseph22]

Hi all,

 

Have a question on the above.

 

Lawyer found that part of the land of the project is under "Road reserve".

 

What are the implications of this? The valuation? Subsequent perceived value?

 

Thanx

 

I think meaning that the portion of the land are reserve for road extension in the future. might not be good for you in the long run.

[Yogi]

It will also affect your set-back.

[Soya]

that's bad news. it means the property gotta surrender the land at any time to the gahmen if they hv road widening plans. if no widening, perceived value oredi factored in the fact that the property is facing some main road. if got widening, not perceived but actual value will prob drop.

[Jordanplus]

that parcel land within the road reserve is belong to state land (SLA). your nett land area is lesser. The implication r valuation of property is lesser due to lesser total land area, buildable gross floor area is lesser against your nett land area with plot ratio. your boundary fancing have to build after your road reserve line and your project green buffer and building setback must base from road reserve line.

[Yattokame]

Thanks for the reply.

 

 

Edited June 5, 2010 by Yattokame

[Soya]

that's why we pay lawyers; to do the necessary due diligence. but ultimately, it's up to the buyer if they wish to proceed wif the transaction given the info presented before them.

[Porker]

Hi all,

 

Have a question on the above.

 

Lawyer found that part of the land of the project is under "Road reserve".

 

What are the implications of this? The valuation? Subsequent perceived value?

 

Thanx

 

Implications:

 

1) Part of the boundary will be set back for road widening in future.

 

2) Smaller land area

 

But...

 

1) Gross floor area will still be meted to you with respect of the original area

 

Valuation is based on location, shape and size of land. Road reserve affects majority of land parcels in Singapore. Its a given.

 

Don't be so perturbed by it. Its a small thing. Hardly considered an issue.

[Yattokame]

Thanx again

 

Met up with lawyers and discovered the following

 

1) Road reserve could also mean they HAD already done something to it. Never update?

 

2) Most lawyers for condo sale skip this step; even valuers. wth.

 

thanx :)

 

edit: lawyer advised I reserve the right to rescind contract

Edited June 5, 2010 by Yattokame