Flashcards in Preparation for Sale or Purchase of Property Deck (14)
What piece of legislation introduced Home Reports?
The Housing (Scotland) Act 2006.
Why were Home Reports introduced?
- To provide better information to buyers and sellers about the condition of the property before offers are placed.
- To give incentive to sellers to fix any repairs
- To address problem of multiple surveys and valuations being carried out
- To address the problem of artificially low asking prices being set.
Who has legal responsibility for commissioning a Home Report?
Who may a Home Report be obtained from?
A surveyor who is a member of the Royal Institute of Chartered Surveyors (RICS)
How much does a Home Report cost?
- RICS confirmed that Home Reports tend to cost between £500-£800
- Cost depends on size of property and surveyor used.
What does the Home Report detail about the OUTSIDE of a property?
AGE/CONSTRUCTION OF BUILDING
- Repairs of no immediate effect to the building
- Repairs which are necessary to the building but are not urgent
- Structural movement e.g. damp, rot, beetle infestation - MOST SERIOUS
What does the Home Report detail about the INSIDE of a property?
- Surveyor will inspect floors, ceilings, walls, electrical and heating supplies.
- Any defects found with any of the above will be categorised as
(1) Repairs of no immediate effect
(2) Repairs which are necessary to the building but not urgent
(3) Structural Movement (MOST SERIOUS)
What are the three documents which make up the Home Report?
- Initial Survey
- Energy Report
- Property Questionnaire
What does the Energy Report detail?
HOW ENERGY EFFICIENT THE PROPERTY IS
- Checks insulation in roof
- Insulation of walls
- Whether there is double glazing or not.
- If the property uses energy efficient light bulbs
- Check of the Hot water cylinder and boiler
MOST CRUCIALLY IT PROVIDES DETAILS OF WHERE IMPROVEMENTS CAN BE MADE TO ANY OF THE ABOVE
What is the shelf life of a Home Report?
The Home Report must be no more than 12 weeks old when the property goes on to the market.
The seller is also obligated to provide basic information in a property questionnaire. What sort of information will be given?
- Council Tax Band
- Local Authority notices served on the property
- alterations made
- History of flooding
What are the advantages to the PURCHASER of a Home Report?
- The purchaser does not need to conduct their own survey and valuation report, meaning they can view more properties as they won't be out of pocket.
- Buyer can take a detailed report to their lender.
What (if any) are the advantages of the Home Report for the SELLER?
Seller is provided a detail condition and valuation report on their property by a member of the local community.