As the form will be sent to the lender’s solicitor/conveyancer, there is no need to inform the valuer of any subsequent changes. If any changes are made then the sooner the lender’s solicitor/conveyancer receives the form and is made aware, the better. 9) What happens if further incentives are offered after the form has been submitted to the lender’s solicitor/conveyancer? If this situation arises, then the developer’s/seller’s solicitor/conveyancer should inform the lender’s solicitor/conveyancer immediately. Ideally this will be through an amended version of the form, but it may just be a letter, email confirming the changes. 10) How does the RICS Red Book reflect the requirements imposed by the form? The Disclosure Form requirements are part of the mandatory requirements in UK Valuation Standard 3.1 "Residential Property Mortgage Valuations" and UK Appendix 10 "RICS residential mortgage valuation specification". The procedure provides clarity of approach to the identification of incentives and the purchase price of the property to be valued. RICS has produced a Guidance Note on The Valuation of Individual New Build Homes as further guidance for its members. 11) How are the requirements of the form reflected in the existing instructions to solicitors/conveyancers in the Lenders’ Handbook? In short, the form does not override or discharge any duty solicitors/conveyancers have to the lender through instructions provided elsewhere in the Lenders’ Handbook. The form is a simple way of drawing together the information that a solicitor/conveyancer is already required to collect on behalf of the lender, as well as some additional information that is required for the valuer. The solicitor/conveyancer is not being asked to verify the information contained in the form, but should simply confirm with the buyer/borrower that the information provided on the form regarding the agreed sales price and incentives offered is in line with the buyer/borrower’s understanding. The solicitor/conveyancer will only be required to report the information provided on the form to the lender in line with the lender’s instructions in part 2 of the Lenders’ Handbook. For example, some lenders only require information on incentives where they are in excess of 5% of the purchase price reported.
As the form will be sent to the lender’s solicitor/conveyancer, there is no need to inform the valuer of any subsequent changes. If any changes are made then the sooner the lender’s solicitor/conveyancer receives the form and is made aware, the better. 9) What happens if further incentives are offered after the form has been submitted to the lender’s solicitor/conveyancer? If this situation arises, then the developer’s/seller’s solicitor/conveyancer should inform the lender’s solicitor/conveyancer immediately. Ideally this will be through an amended version of the form, but it may just be a letter, email confirming the changes. 10) How does the RICS Red Book reflect the requirements imposed by the form? The Disclosure Form requirements are part of the mandatory requirements in UK Valuation Standard 3.1 "Residential Property Mortgage Valuations" and UK Appendix 10 "RICS residential mortgage valuation specification". The procedure provides clarity of approach to the identification of incentives and the purchase price of the property to be valued. RICS has produced a Guidance Note on The Valuation of Individual New Build Homes as further guidance for its members. 11) How are the requirements of the form reflected in the existing instructions to solicitors/conveyancers in the Lenders’ Handbook? In short, the form does not override or discharge any duty solicitors/conveyancers have to the lender through instructions provided elsewhere in the Lenders’ Handbook. The form is a simple way of drawing together the information that a solicitor/conveyancer is already required to collect on behalf of the lender, as well as some additional information that is required for the valuer. The solicitor/conveyancer is not being asked to verify the information contained in the form, but should simply confirm with the buyer/borrower that the information provided on the form regarding the agreed sales price and incentives offered is in line with the buyer/borrower’s understanding. The solicitor/conveyancer will only be required to report the information provided on the form to the lender in line with the lender’s instructions in part 2 of the Lenders’ Handbook. For example, some lenders only require information on incentives where they are in excess of 5% of the purchase price reported.