Red Book update on New Build

Citation

(2009), "Red Book update on New Build", Structural Survey, Vol. 27 No. 1. https://doi.org/10.1108/ss.2009.11027aab.003

Red Book update on New Build

Article Type: Newsbriefs From: Structural Survey, Volume 27, Issue 1

Keywords: Incentives, Mortgage valuations, New build, Red book

A change to RICS valuation standards (The Red Book) effective from 1st September 2008 is an addition to the Specification for Mortgage Valuations (UK Appendix 3.2). It relates to new build incentives, and the valuation of newly built and newly converted residential property, not yet occupied for the first time. This amendment follows an agreement between the Council of Mortgage lenders (CML), the Home Builders Federation (HBF), and Homes in Scotland. From 1st September 2008 the developer/builder or selling agent will be required to complete a “CML Disclosure of Incentives Form” for of each sale of a newly built home. This form will include all details of the sale price and incentives included in the selling package, and will be returned to the conveyancer with the pre-contract documentation. This will give transparency to the transaction, and will be welcomed by all involved in this area of the housing market. Importantly, the CML Disclosure of Incentives Form is to be made available, on request, to the valuer. The Red Book amendment reminds the valuer to ask for sight of the form at the time of the valuation, and to record all the information necessary in order to enable the selling price to be properly considered in the valuation process. Where the mortgage report form allows, there are also suggested paragraphs that can be used.