New Build Conveyancing – Incentives to be disclosed !

The procedures were created with the intention of addressing an endemic  mortgage fraud problem. The CML Lenders Handbook now require disclosure of information concerning incentives and discounts offered to buyers by the developer/builder in a prescribed form. This pro-forma document prepared by the CML is called a Disclosure Incentive Form.

The Council of Mortgage Lenders (CML) from September 2008  has introduced new protocol  in relation to incentives attached to enticing buyers into purchasing newly built or converted properties. A buyer’s conveyancing  solicitor  must  ensure that these new procedures are complied with before the lender will release mortgage advance for completion. 

A  buyer’s conveyancing solicitor will need to receive the Disclosure Incentive Form  from the developer before submitting the Certificate of Title to the mortgagee thereby requesting  funds for completion.  The completed 'Disclosure Incentive Form' will need to be sent to the Lender.

To avoid potential delays Fridaysmove recommends that clients  arrange for the developer to complete the 'Disclosure Incentive Form' at the same time as the reservation form is completed and then provide a copy of the form to the lender as soon as possible. The estate agent should also be requested to supply  a copy of the 'Disclosure Incentive Form' to the mortgagee valuer when the survey is booked in.

The pro forma 'Disclosures Incentive Form' is available to download directly from the Council of Mortgage Lender’s web site under the section dealing with the Lenders Handbook Section.