Lenders introduce new form for disclosing incentives
Published: 5 October 2011 | Author: Bernard Clarke
Builders and developers selling newly built, converted or renovated property funded by a mortgage have been required to fill in a new "disclosure of incentives" form from the beginning of this month.
We introduced the new form in response to evolving marketing practices by developers, and to make the wording of the document clearer. It is designed to ensure that any incentives offered to buyers by developers are clear to lenders, so that firms advancing mortgages have a reliable view of what is being paid for the property in net terms.
The new form replaces an earlier version, and must be used in all cases in which a disclosure of incentives is required after 1 October.
By now, lenders should already have made sure that their own staff are aware of the new requirements, and should only be working with the new form. Conveyancers working for a builder or developer selling a property must now ensure that they fill in the new form and forward it to the conveyancer acting for the lender.