Home Report - Edinburgh Prime Property

Home Report
A guide for buyers and sellers in Scotland
Scotland
www.rics.org/scotland

What is a Home Report?
The Home Report is a pack which contains
information about a residential property (house,
flat, apartment, tenement, villa etc) which is on
the market for sale in Scotland. It should be given
to anyone interested in buying that property.
The Home Report is required by law for
homes in Scotland marketed for sale from
1 December 2008.
The Home Report has three parts:
1. Single survey and valuation of the property which
must, by law, be carried out by a chartered
surveyor who is a member of RICS. The single
survey will give information about any problems
the property has and how urgently it needs to
be repaired. It will also state its current value
and how accessible it is for disabled people
2. Energy report with an Energy Performance
Certificate which can also be carried out by a
chartered surveyor who is a member of RICS.
The report will show how ‘green’ the property is
and will rate the home A-G for energy efficiency
(similar to how fridges and freezers are rated).
The report will recommend how to improve the
property’s energy efficiency
3. Property questionnaire which will be filled out
by the home owner showing who the electricity
supplier is; whether the home has satellite TV; what
the parking arrangements are and the council tax
band as well as other general information.
Additionally, on request of the home owner, the
chartered surveyor can provide a generic Mortgage
Valuation Report for inclusion in the Home Report.
This is a document for a person who wants to
buy your home, to take to a lender to discuss a
mortgage. It is not a legal requirement of the
Home Report but has been included to assist
potential buyers.
2 Home Report

How do I get a Home Report?
If you own a property which is being put up for sale on or after 1 December 2008
you must arrange for a Home Report to be prepared. You should contact a chartered
surveyor who is a member of RICS before your home goes on the market.
There are several ways to find a chartered surveyor. Check your local phone book
or Yellow Pages, visit www.yell.com or www.ricsfirms.com (search for a ‘residential
survey’) or call the RICS Contact Centre on 0870 333 1600.
You can ask your selling agent to contact a chartered surveyor on your behalf if
you prefer.
The chartered surveyor will carry out the single survey and valuation and energy
report in one visit. Additionally, if you request a generic Mortgage Valuation Report
to be included in the Home Report, the chartered surveyor will complete this at the
same time too.
By law, a chartered surveyor who is a member of RICS must carry out the single
survey and valuation. They are also able to do the energy report and Energy
Performance Certificate.
The property questionnaire must be completed by the home owner.
If you are interested in buying a property, you should ask the owner of the property
or their selling agent for a hard copy or emailed copy of the Home Report. By law,
anyone genuinely interested in buying a residential property is entitled to receive a
copy of the Home Report for that property. The seller or seller’s agent may ask the
potential buyer to pay a small fee for a copy of the Home Report to cover copying
and postage costs.
Home report 3

How much will a Home
Report cost?
For an average home such as a city centre
flat or a suburban house, with no major
problems, the single survey, valuation and
energy report with Energy Performance
Certificate will cost between £500 and £700
plus Vat. The home owner will arrange and
pay for a Home Report.
For a property in a remote area or with
several defects or a large house it will
probably cost more than this. For a small
one bedroom flat, it may cost less.
If, after the chartered surveyor has inspected
the property, but not yet written up the
single survey, the seller chooses not to use
the report, the seller is still liable to pay 80%
of the fee.
Once the chartered surveyor has written up
the single survey, the seller will have to pay
the full fee regardless of whether they choose
to use the report or not. This will discourage
sellers from ‘shopping around’ to find the
‘best’ survey and valuation for their property.
The property questionnaire aspect of the
Home Report will be filled out by the home
owner. However, if the home owner has
asked their selling agent to compile the
Home Report on their behalf, there may be
an added cost. Home owners should check
with their agent.
4 Home Report
“
You must have a fully completed Home Report
before putting your property on the market from
1 December 2008.
”

Does my home need a Home Report?
If you are putting your residential property
(house, flat, apartment, tenement, villa
etc) in Scotland up for sale on or after
1 December 2008, you will need to
arrange a Home Report.
There are some types of properties that
don’t need a Home Report (see page 6
for the list). Homes marketed for sale
continuously before 1 December 2008 will
not need a Home Report.
You must have a fully completed Home
Report before putting your property on the
market from 1 December 2008. Allow up to
two weeks for the Home Report to be ready.
Home report 5

Which homes don’t need
a Home Report?
• Homes already up for sale (and not
taken off the market at any point) before
1 December 2008
• Brand new homes sold ‘off plan’ or
recently completed
• Newly converted premises where a
property converted to a home has never
been used in its converted state
• ‘Right to Buy’ homes
• Seasonal and holiday accommodation
which, legally, can only be lived in
for up to 11 months of the year.
This does not include second homes
or holiday cottages that could be used
all year
• A portfolio of residential properties – a
group of homes which will be sold in one
transaction, to one ‘commercial’ buyer
and not as separate homes
• ‘Mixed sales’ where the home is sold
as part of the business such as a
farmhouse which is part of a working
farm or a flat above a shop which is
sold with the shop
• Dual use of a dwelling house where
the home is, or forms part of, a property
most recently used for both residential
and non-residential purposes, such as a
commercial studio where the owner also
lives in the home
• Unsafe properties which are obviously
dangerous for people to live in
6 Home Report
• Properties to be demolished which
have the consents needed for
demolition and consents obtained
for redevelopment.

Who pays for the
Home Report?
The home owner will arrange and pay for the
Home Report. Anyone interested in buying the
property can request a paper or email copy of
the Home Report from the seller or the seller’s
agent. By law, interested buyers must receive it
within nine days of asking for a copy. The seller
or seller’s agent may request the potential buyer
pays a small fee for a copy of the Home Report
to cover copying and postage costs.
Why are Home Reports a legal requirement?
Home Reports have been introduced by the
Scottish Government under the Housing
(Scotland) Act 2006. Before Home Reports
came along, only one in ten buyers had
a ‘Homebuyer’ survey (also known as a
‘scheme 2’ survey) done on a property
before buying it. This meant some buyers
got a nasty surprise when they moved in
to their new home and discovered the roof
needed to be repaired or that there were
other expensive problems with the property.
A Home Report will give potential buyers
information upfront about the condition
of the property. Home Reports may
encourage owners to take care of their
homes and better maintain them.
The Home Report may also stop sellers
setting very low, unrealistic asking prices
for their homes, just to get more people
interested. The chartered surveyor will
already have stated the value of the
property in the Home Report so people
interested in buying the property will know
in advance what the value is.
The energy report which offers ways to
make your home ‘greener’ could also
encourage owners to make their homes
more energy efficient, benefitting the
environment and possibly reducing their
gas, oil and electricity bills.
Sellers will benefit from having a Home
Report available to them when they are
buying a house. First time buyers won’t
have to worry about finding the money to
pay for surveys and valuations on any of
the houses they are interested in buying
because they will be provided with a
Home Report by the seller.
Home report 7

How will the home owner pay
for the Home Report?
This depends on the agreement between
the owner and the chartered surveyor or the
agreement with the company they ask to
compile the Home Report for them (if any).
Does the Home Report have
a ‘use-by’ date once the home
is on the market?
There is no set ‘shelf life’ or ‘use by date’ of
a property’s Home Report but home owners
should take advice from a chartered surveyor if
their property takes a long time to sell as it may
need ‘refreshing’. Even a cold winter can have
an effect on your home’s condition.
If after the Home Report is compiled, your
property suffers from the effects of a flood or
fire or other damage, you should consult your
chartered surveyor immediately as the single
survey and valuation will need to be updated.
How far in advance of a home
being marketed for sale can a
Home Report be compiled?
By law, the Home Report documents can be
no more than 12 weeks old when the property
is put on the market for sale.
If I buy a property which has a Home Report and sell that
same property soon afterwards, do I have to get another
Home Report done?
Yes. A new Home Report has to be arranged each time a property is put on the market for sale.
8 Home Report

How long will it take for sellers to
get a completed Home Report?
The seller must have a complete Home Report before marketing
their property for sale so that there is no delay in providing the report
to potential buyers. Sellers should allow up to two weeks for the
chartered surveyor to complete the single survey, valuation, energy
report and Energy Performance Certificate. It may take longer than
two weeks for a very large or remote house. The documents from the
chartered surveyor will then be added to the property questionnaire
completed by the seller to make up the full Home Report.
Will all mortgage providers accept the generic
Mortgage Valuation Report?
Mortgage providers usually have a list of chartered surveyor firms they will accept
generic Mortgage Valuation Reports from. Buyers should check with their mortgage
provider as soon as possible to see if they will accept the one contained in the
Home Report.
What if the home owner chooses not to get a generic
Mortgage Valuation Report?
The home owner is not legally required to include a generic Mortgage Valuation Report
in the Home Report but it is likely they will choose to. If they decide not to, it is possible
the mortgage lender will request that the potential buyer pays for one.
What happens if I don’t get a Home Report?
If you put your home in Scotland up for sale on or after 1 December 2008 and you don’t
arrange a Home Report, you are breaking the law and could be fined £500 by your local
Trading Standards officer.
An estate agent or solicitor is unlikely to help you sell your home if you do not have
a Home Report as you are breaking the law.
An interested buyer will expect to see a Home Report for your property and
probably won’t buy your property if you do not provide them with a Home Report.
If you are interested in buying a property in Scotland after 1 December 2008 and
the seller hasn’t had a Home Report done, you should not buy this property.
However, there are a few types of properties that don’t need a Home Report. See the
list on page 6 of this brochure. Buyers should ask for evidence from the seller that the
property does not need a Home Report.
Home report 9

Can buyers trust the single
survey and valuation in the
Home Report?
Yes, absolutely. The single survey and
valuation part of the Home Report must, by
law, be carried out by a chartered surveyor
who is a member of RICS. Chartered
surveyors are highly trained and one of the
most highly regulated professions in the UK
which means they follow very strict rules
when surveying and valuing a property.
The system they use to value a home is
recognised throughout the world.
Chartered surveyors must have special
insurance called ‘Professional Indemnity
Insurance’ which protects buyers and
sellers if there are any problems.
Can I get my own survey
or valuation done on a
house I want to buy?
Yes you can but there should be no
need to because the single survey and
valuation in a Home Report can be
trusted by the buyer and seller.
Chartered surveyors are highly trained
and one of the most highly regulated
professions in the UK which means they
follow very strict rules when surveying
and valuing a property. The system
they use to value a home is recognised
throughout the world.
10 Home Report

Where can I get
more information?
Any firm of chartered surveyors who are
doing Home Reports can help you.
To find a firm see your local phone book;
Yellow Pages;
www.yell.com
or
www.ricsfirms.com
(search for ‘residential survey’)
or call the RICS Contact Centre on
0870 333 1600.
For general information on
Home Reports:
RICS Scotland website
www.rics.org/scotland
or call the RICS Contact Centre on
0870 333 1600.
Scottish Government website
www.scotland.gov.uk/homereport
What if I am unhappy
with parts of the
Home Report?
If you feel you have a concern, you have the right
to complain about the single survey, valuation or
energy report in the Home Report. Both the buyer
and the seller have a legal right to damages if the
chartered surveyor is found negligent in any way.
First of all you should write a letter to the firm
of chartered surveyors stating why you
are unhappy. If you are unhappy with their
response and can’t reach an agreement, you
should contact the free independent surveyor
ombudsman service who may be able to help
investigate your complaint and decide what
action should be taken. The chartered surveyor
must accept the ombudsman’s decision.
For consumer advice about
Home Reports:
Consumer Focus Scotland
www.consumerfocus-scotland.org.uk
Which?
www.which.co.uk
If you have a complaint against
a chartered surveyor contact
the independent surveyor
ombudsman service
www.surveyors-ombudsman.org.uk
or call them on
01925 530270
or email
enquiries@surveyors-ombudsman.org.uk
Home report 11

Advancing standards in land, property, and construction.
RICS is the world’s leading qualification when it comes to
professional standards in land, property and construction.
In a world where more and more people, governments, banks
and commercial organisations demand greater certainty of
professional standards and ethics, attaining RICS status
is the recognised mark of property professionalism.
Over 100,000 property professionals working in the major
established and emerging economies of the world have
already recognised the importance of securing RICS status
by becoming members.
RICS is an independent professional body originally established
in the UK by Royal Charter. Since 1868, RICS has been
committed to setting and upholding the highest standards of
excellence and integrity – providing impartial, authoritative
advice on key issues affecting businesses and society.
12 Home Report
contact
RICS Scotland
RICS Scotland
9 Manor Place
Edinburgh
EH3 7DN
United Kingdom
T +44 (0)131 225 7078
F +44 (0)131 240 0831
contactrics@rics.org
www.rics.org/scotland