The disclosure of incentives form was developed to ensure full disclosure of the financial aspects of the sale of newly built, converted and renovated property transactions. It was developed as the result of feedback from the lending industry that it had become difficult, due to lack of transparency over financial and non-financial incentives, to accurately assess the value of some new build properties.
The purpose of the form is to draw all the relevant information about newly built, converted and renovated property transactions into a single form. This will improve transparency and simplify the flow of information to all key parties involved in the transaction.
Lenders, developers, valuers and solicitors/conveyancers were involved in developing the form to ensure that the process is as simple as possible. To implement these the Royal Institution of Chartered Surveyors made changes to the professional standards for valuers in the 'Red Book', lenders, via the Council of Mortgage Lenders (now part of UK Finance), changed their instructions to solicitors/conveyancers, while the Home Builders Federation (HBF) and Homes For Scotland (HFS) have amended their Codes of Conduct.
You can learn more here.