A bank waiver will be obtained when a developer has a debt before you invest on his project and or he is unable to pay the debts to a creditor (bank). It is required to request from the said institution to issue a bank waiver in accordance to which the banking institution will waive the rights created in its favor by the registration of the mortgage on the property, provided the conditions specified in the bank waiver will be fulfilled by the Seller and the Purchaser.
It will protect a purchaser from any developer mortgage on the land. If there is no developer mortgage on the land then it would not be needed. Dependent on the bank and the level of mortgage they may or may not be willing to issue a waiver.
The bank waiver implies that the bank does not have any rights and does not have any priority and or claims related to the Purchasers’ investment. This document shall be issued prior or simultaneously with contract land registration.