The subject land is assumed to have a "clean" title so as to expedite the carrying out of mass valuations. The NSW Royal Commission considered this assumption as follows:

If the submissions were conceded it would be necessary to value every estate or interest. This would create difficulties in valuation far greater than any which may now apply in the determination of the hypothetical fee simple"   para 73.

Land Value requires an unencumbered fee simple in possession value. That is, the owner is assumed to have full freehold title without any encumbrance and is entitled to vacant possession for example, without the encumbrance of a mortgage - Langford v WLC (1959) 15 The Valuer 374.

Although private restrictions on title are ignored any general or public control is taken into account - Royal Sydney Golf Club v The Comm of Tax (1957) 91 CLR 610. Therefore, town planning controls are taken into account as well as general government policy.