Sellers – Questions and Answers
Q - What documents are included in the Home Report?
A - The Home Report will include a Single Survey, an Energy Report and a Property Questionnaire.
Q - I am thinking of selling my property soon. When do I have to provide a Home Report?
A - Properties marketed for sale from 1 December, 2008 in Scotland will need a Home Report. You must have a completed Home Report before your property can be marketed.
Q – Is a Home Report required if my property is marketed for sale prior to 1 December 2008?
A – No, however, if you take your property off the market anytime after 1 December and re-market it, you will be required to produce a Home Report. Although you will not require a Home Report if your house is already on the market on 1 December, you will need to obtain an Energy Performance Certificate (‘EPC’) if your house will still be on the market after 4 January, 2009. This is because there is a separate duty arising from European law to make the EPC available to any prospective buyer of the house after 4 January 4, 2009.
Q - Who will compile a Home Report?
A - The Home Report will be compiled by the seller's agent or the seller. A surveyor will provide the Single Survey and Energy Report. The seller of the property will complete the Property Questionnaire.
Q - I am a private seller, and do not plan on using a solicitor or estate agent to market my house. Do I need a Home Report?
A - Yes, under Part 3 of the Housing (Scotland) Act 2006, a person who is responsible for marketing a property must provide a Home Report to any prospective purchasers.
Q - Are there any circumstances where I do not need to provide a Home Report?
A - If you market your house for sale, you must obtain a Home Report. However, the duty to provide a Home Report does not apply if you (or your selling agent) reasonably believe that the person making the request for a copy Home Report:
- is unlikely to have sufficient means to buy the property in question
- is not genuinely interested in buying the property
- is not a person to whom the seller is likely to be prepared to sell the property (this does not allow people to discriminate, say on grounds of race)
Q - Who pays for the Home Report?
A - The seller is responsible for providing the Home Report. There is nothing in the legislation insisting that the buyer must reimburse the seller for the cost of the Home Report.
Q - How much will a Home Report cost?
A - The cost of a Single Survey and Energy Report will be set by individual surveying firms and will vary according to the size of the property.
Q - How 'old' can the Home Report documents be when the property is put on the market for sale?
A - The legislation says that the documents should be no more than 12 weeks old when the property is first marketed.
Q - Will the Home Report have a specified shelf life? (i.e. should sellers have to pay for refreshed surveys if the property has not sold after a few months?)
A - The legislation does not impose a set shelf life or validity period for any of the Home Report documents. This reflects current practice for survey reports. Decisions as to whether any aspects of the Home Report need to be updated are for sellers, buyers and their professional advisers to take, depending on the circumstances of each case.
Q - How will I pay for the Home Report?
A – To ease any upfront payment issues that may be incurred when a property is marketed, ESPC Home Reports have a range of payment options. One option will allow you to defer payments until your property is sold. This will also allow you to include other marketing costs (such as advertising) in the deferred payment, therefore incurring no initial charge. Paying upfront will also be an option if you wish.
Q - What happens if the Single Survey identifies a significant problem with the condition of the property such as dry or wet rot? Does the seller have to rectify the problem?
A - This is a decision for the seller. The seller may choose to rectify the problem or may for other reasons, market the property immediately. There is nothing in the legislation forcing the seller down one particular route. From the Single Survey report, the seller will at least be aware that there is a problem and have options to decide what to do about it.
Q – If a problem, highlighted by the Single Survey, is rectified will the survey be amended accordingly?
A – The survey would either need to be re-commissioned (which would incur a cost), or evidence of the work carried out could be included within the Home Report.