Home Reports provide buyers, solicitors and mortgage lenders with a clear market valuation of residential property on the open market for sale and give detailed information on the condition of the property.
The onus is now with the seller of a property in Scotland, who wishes to sell their residential property on the open market, to provide a home report to any potential buyers. Failure to do so could result in you being fined up to £500.
A Home Report comprises three separate reports these are:-
1. The Single Survey
The single survey reports on the condition of property, gives a valuation and mortgage valuation of the property and gives accessibility information for people with particular needs.
The surveyor will visit your property to carry out an inspection of a wide range of matters, some of which are:
- Problems with the roof
- Outbuildings/communal areas/boundaries
2. The Energy Performance Certificate
The Energy Performance Certificate (EPC) shows information about a property’s energy use and typical energy costs. It also assesses the properties environmental impact and will give recommendations on how to make the property more energy efficient.
The surveyor will assess items such as: the size of your home, insulation, lighting, boilers, hot water tanks, radiators and windows. The EPC will remain valid for a period of 10 years.
3. The Property Questionnaire
The property questionnaire is completed by the seller giving an overview of useful information such as the property’s Council Tax band, parking conditions, factoring information, issues of flooding, damp or rot and any alterations that have been made.
It is important you answer the questionnaire as accurately and fully as you can as this will usually form part of the contract between the seller and buyer.
Usually your estate agent will assist you in obtaining the Home Report. The single survey and Energy Performance Certificate must be carried out by a suitably qualified surveyor and the property questionnaire is completed by the seller.
If you do not wish to use an estate agent you can also go direct to a surveyor to obtain a Home Report. A list of qualified surveyors can be found through the Royal Institution of Chartered Surveyors (RICS) website.
Even if you provide a buyer with a Home Report they, or their mortgage lender, may wish to obtain a separate survey of their own. This will usually be obtained at the buyers own expense.
The Home Report must be dated no more than 12 weeks from when you put your property on the market. If your property is on the market for an extended period, and the Home Report is dated longer than 12 weeks, a buyer will usually insist on a refresh survey. If this happens it will be up to the seller and buyer to agree who pays for this.
The surveyor will give an overall opinion of the state of repair and condition of the property and will rank various areas that have been inspected from 1 – 3.
- No immediate repair required
- Future repairs may be required
- Urgent repairs required
You don’t have to fix issues noted within the report but it may be off-putting to buyers if there are repairs necessary. The surveyor may recommend retention of funds by the buyer in order to fix the issues meaning it may affect the price someone is willing to pay to purchase the property. It is therefore best to discuss this with your estate agent or solicitor
If you would like further information, please contact our experienced conveyancing team who will be more than happy to help.