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Every buyer does, in some way, an appraisal of the apartment in which they are interested. This is how you check whether that property meets your needs and is in order. In a real estate financing, however, it is also necessary to make a more technical analysis: the inspection of the property is a condition for banks to do business. It is usually conducted by engineering companies that specialize in this service.

In this article, we will explain how this inspection for property financing works, how it is done and what details are observed. We will also understand the importance of this assessment for the credit operation, how much it costs and how to resolve possible inconsistencies in the inspection.

Throughout this article, you will check:

What is a real estate loan survey?
How is the property inspected?
What are the problems that can arise when inspecting the property?
What is the property inspection fee for financing?
How does the property inspection work in each bank?
How does property inspection work with Loft Cred?
What is a real estate loan survey?

The property inspection in a loan is a step that usually comes after the client has passed the credit analysis, and can be carried out together with the legal analysis (dedicated to the documentation of the seller, buyer and the property). It serves to certify that the chosen property is habitable, and to determine its estimated value, through a report. This document is generally signed by engineering companies.

These companies are partners with the banks, which call on them especially to carry out this type of analysis. For the bank, this report is essential to provide more security to the financing. After all, the property to be purchased will also be used as collateral for the credit operation. In case of default by the client, this apartment can be auctioned and used by the bank to “cover” the outstanding debt.

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How is the property inspected?

Typically, it is the bank’s own engineering partner that contacts the customer or seller. She schedules the best day for a professional to come to the apartment to assess him. But today, thanks to technology, this assessment can also be done completely remotely:

Remote property valuation: In this case, an engineer does not need to go to the apartment. “He looks at the documentation provided and the market value of properties in the region,” explains Felipe Soares, business analyst at Loft Cred
On-site: an accredited engineer linked to the bank goes to the property. “It checks its structure and whether it is sufficient to offer a good guarantee for the bank, and issues a report with the property’s value”, explains Felipe.

The difference between one modality and another, according to the specialist at Loft Cred, is that “remote valuation tends to come with a market value lower than the initial one”. Anyway, in both, a report will be issued with the necessary information for the bank. They are collected using a methodology defined by the Brazilian Association of Technical Standards (ABNT). Among the aspects observed are:

Structural conditions of the property
apartment size
conservation state
Checking for possible construction defects
Health and functionality conditions
See how the property valuation for a loan works
What are the problems that may arise when inspecting the property?

Felipe Soares observes that some problems may appear at this stage of real estate financing. It is common for discrepancies to appear between the value of the property declared by the seller and that calculated by the engineer, for example. But this can be disputed by the customer.

“Today you have the possibility of reviewing the appraisal report. Then I ask the bank’s own engineering to review this amount. Within the fee you paid for the assessment, you are entitled to a second inspection, from another accredited engineering company. And then the property ends up with the corrected value”, explains Felipe.

Another common problem occurs when the bank identifies discrepancies between property registration information and the engineering company’s report. For example: the purpose of the property and the area of ​​the apartment.

“It may happen that the document informs that the property is for residential purposes, and when the bank goes to the place, there is a trade there. Or you go to the property and find that they have expanded its footage, and this is not documented. This information needs to be regularized, otherwise the bank will not be able to proceed with the operation”, observes Felipe.

The business analyst at Loft Cred also says that ongoing works may cause the property to be classified as “uninhabitable” by the bank, and delay the signing of the contract. Therefore, it is necessary to be careful with them. “

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