How Stanley Martin Uses This Clause
Stanley Martin purchase agreements have been documented to include affiliated lender incentive steering provisions. Stanley Martin publishes an Affiliated Business Arrangement (ABA) disclosure on its website, indicating that the company has financial relationships with settlement service providers. Buyers should review the ABA disclosure and compare terms with independent providers. RESPA requires that the buyer's use of affiliated services be voluntary. Source: Stanley Martin ABA disclosure page (stanleymartin.com/aba).
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Stanley Martin's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Deposit Forfeiture
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
Standard Form Contract
This clause appears in Stanley Martin's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Stanley Martin's operating states.
| State | Status | Note |
|---|---|---|
| Virginia | Likely Enforceable | Virginia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
| Maryland | Uncertain | Maryland permits preferred lender arrangements subject to RESPA requirements, but Maryland's... |
| Georgia | Likely Enforceable | Georgia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
Related Clauses in Stanley Martin Contracts
This clause often works in combination with other provisions in Stanley Martin's purchase agreements.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
What Buyers Can Do
- Compare rates with independent lenders. The builder's affiliated lender may offer closing cost credits or other incentives, but the overall loan terms may not be the most competitive available.
- Calculate the true cost of lender incentives. A closing cost credit of several thousand dollars may be offset by a higher interest rate over the life of the loan. Run the numbers for your specific situation.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Stanley Martin contracts that collectively limit buyer remedies. A contract scan can identify all of them.