McCarthy & Stone changes contracts in deal with OFT

Retirement house builder McCarthy & Stone has agreed a deal with the Office of Fair Trading (OFT) to remove a clause in its contracts which was thought to breach consumer regulations.

McCarthy & Stone will remove a clause, which charged consumers a “transfer fee” of 1% of the sale price when a property was subsequently sold, from all future contracts.

It also agreed not to enforce the clause in existing contracts.

The move comes after the OFT said it considered the term to be in breach of the Unfair Terms in Consumer Contracts Regulations 1999.

The house builder said it did not agree with the OFT’s view but was co-operating.

Mike Haley, OFT director of consumer protection, said:

"These changes will benefit thousands of elderly and potentially vulnerable residents selling their homes. We are pleased that the changes have been accepted and implemented without the need for further action by the OFT. 

"Moving forward, we welcome the opportunity to work with the code body for the home-building industry as a means to improve lease agreements across the sector."