Interested Party Definition

An Interested Party is any person or entity with a vested interest in the transaction (e.g., parties who may benefit from the property selling at the highest possible price; and can influence the sales price or other terms of the transaction). Interested parties include, but are not limited to:

• Property seller

• Builder or developer

• Real estate agent or broker

• Any contributing party (e.g., seller, originating lender, employer, municipality, nonprofit organization, or related person) affiliated with any of the above.

Note: A lender or employer is not considered an interested party to a sales transaction unless it is the property seller or is affiliated with the property seller or another interested party.

Interested Party Contribution

IPCs are funds used to cover costs typically the buyer’s responsibility. IPCs may include financing or sales concessions.

Sales concessions examples now include:

• Rebates, such as Realtor rebates not credited toward the transaction

• Incentives from a lender who is, or is affiliated with, an interested party

Financing concessions may be applied to:

• Borrower closing costs, including prepaids

• Borrower HOA assessments covering any period after settlement (limited to 12 months)

IPC Exclusions

The following are excluded from IPC contribution requirements:

• Real estate tax credits (legitimate pro-rated tax credits in arrears jurisdictions)

• Builder forward commitment costs (standby commitment agreements executed prior to borrower sales contracts)