The Government have made changes relating to sale and rent back (SRB) agreements in order to close loopholes and protect the public. However, the Financial Services Authority (FSA) has warned that consumers still need to be on their guard. Since the 16th September 2011, anyone who conducts an SRB agreement must be authorised by the FSA, unless they are related to the client.
The FSA has also issued a warning to the public about rogue firms who try to avoid regulation by offering products that pay off consumers' debts thereby allowing them to stay in their own homes, with the actual sale of the property delayed. These products are often called "Lease Options", or "Exchange with Delayed Completion" arrangements, but are in fact regulated SRB agreements, even if the sale of a property is not fully completed. Firms offering them must be authorised by the FSA for SRB activities and are subject to the usual regulatory requirements.
If you have any queries relating to the above then please contact our Residential Property experts on 01708 784000.
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