TLDR: If your client has declared a gift as a source, the giftor must confirm that the money is not repayable, they won't live at the property, and expect no legal or beneficial interest. If any are false, they are classified as a lender and must complete a purchaser's Source of Funds journey. Lenders should be set as "Property - Other" and detail the funding sources accordingly.
What is considered a gift, and what to do if the giftor criteria is not met
What is a giftor?
As part of the Source of Funds giftor journey, the giftor will be asked to confirm that the following facts are true:
- The money going towards the gift is not repayable
- The person gifting will not be living at the property
- The person gifting is not expecting any legal or beneficial interest in the property
If any of the above statements are not true, the client is not classified as a giftor and will need to complete a different Source of Funds app journey. If your client is expecting their gift to be repaid, they are classed as a lender and will need to follow the steps outlined below.
If a client indicates in the app that one or more of the above statements is false, their report will appear as though the client has skipped the task, and no questionnaire results will be included.
What if an individual does not meet giftor criteria
If your client is lending money towards a purchase rather than gifting (or is planning to live at the property in question), they will need to complete the questionnaire designed for a purchaser.
When setting up an activity for a lender, please select the person type as 'Property - Other'. This will send the client a new Source of Funds task for your client, designed for a purchaser.
The client will need to enter the entire property price and allocate the buyer’s portion to ‘Other source’, adding a note to indicate those funds are separate from their gift. They should then indicate from where the remaining amount (their gift) has been sourced, i.e. from selling a property, from their savings, or from inheritance funds.
This guide is for Thirdfort Clients using the new CDD platform. This article may not apply if you have not yet been migrated to the new platform or access Thirdfort via a partner or reseller