Tuesday 26 January 2016

Skipton make Subtle but Important Change to CML Handbook Requirements

Skipton Building Society have made a recent change to P2 of their CML Handbook. The change was to Section 4.1

The old wording was :

The Borrower should provide you with a copy of the valuation. If not, you can obtain a copy from the Completions Team

The new wording is:

We provide a copy of the valuation to you in most cases. If not attached to your instructions, please obtain a copy from the Completions Team

This change seems to reaffirm the P1 obligation to have sight of and check the valuation report. It’s very easy to assume that if the lender does not send a copy of the valuation that you are not obliged to check it. It’s nevertheless very important to remember that  regardless of where the report is obtained from, you must carry out the checks detailed in sections 4.2 and 4.3 of the Handbook which read as follows:

4.2 You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell us immediately.

4.3 You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in the mortgage offer are correct. If they are not, please let us know as soon as possible (see part 2) as it will be necessary for us to check with the valuer whether the valuation needs to be revised. We are not expecting you to assume the role of valuer. We are simply trying to ensure that the valuer has valued the property based on correct information.

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