Home Reports set to Change the Scottish Housing Market
How Home Reports will affect you
Home Reports will be required from December. Whether you’re a buyer or
seller you need to know what to look out for. This new report must be prepared
and available before a home can be marketed for sale. Providing key information at
an early stage in the property transaction will allow a more informed
decision.In an effort to encourage a fairer and greener housing market, the
Government has introduced legislation which means that from 1 December 2008,
properties for sale in Scotland will have to be marketed with a Home
Report.
Why do we need Home Reports?
Commissioned by the seller, a Home Report will provide detailed information
about the condition and value of a property before offers are made and
expenses incurred.
Prospective buyers, especially those buying for the first time, are not
always aware of the true cost of owning and maintaining a home. A lack of
understanding about long term maintenance or repairs can mean real problems for
those on a tight budget.
The Home Report will also provide comprehensive energy efficiency
information which will help save money on energy bills and provide a better
appreciation of the environmental impact of individual homes.
Access to more information about the condition of a property from the outset
is essential to ensure purchasers know exactly what they are buying into.
Home Report Contents
The Home Report will include three important documents:
The Property Questionnaire
The Property Questionnaire is completed by the seller of the home, probably
with the assistance of their solicitor estate agent. It contains information
about the home that will be useful for buyers and surveyors.
The Single Survey
The Single Survey contains an assessment by a surveyor of the condition of
the home, a valuation and an accessibility audit for people with particular
needs.
The Energy Report
The Energy Report contains an assessment by a surveyor of the energy
efficiency of the home and its environmental impact. It also recommends ways to
improve its energy efficiency.
If you have any questions email ESPC or to learn more visit the
Scottish Government’s
website.
Some common questions answered
Q Do I need a Home Report if I sell my property before 1 December 2008?
A No. Home Reports apply only to properties placed on the market from the
commencement date of 1 December 2008.
Q Who pays for the Home Report?
A The seller is responsible for the cost of the Home Report.
Q How ‘old’ can Home Report documents be when a property is put on the
market?
A Documents should be no more than 12 weeks old when a property is put on the
market.
Q How quickly must a seller or their agent comply with a request for a Home
Report from a prospective buyer?
A The person responsible for marketing a property must provide a copy of any or
all of the documents within 9 calendar days of the initial request.
Q What can buyers do if a Home Report is not provided?
A If a buyer believes that they are being denied a copy of the Home Report
unlawfully, local authority trading standards officers are responsible for
enforcement of the legislation. Failure to comply could lead to a £500
fine.
Q What happens if the survey identifies a problem with my property?
A Sellers can:
a) Do nothing
b) Fix the problem
c) Obtain information on the cost or process for fixing the problem and make it
available to the buyer
Q Will Home Reports have a specified shelf life?
A The legislation does not impose a set shelf life. 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 circumstance of each case.
If you have any questions email ESPC or to learn more visit the
Scottish Government’s
website.
How can ESPC help you with Home Reports?
What is the process for obtaining a Home Report?
Your ESPC solicitor estate agent can arrange your Home Report at the same
time as preparing your property for going on the market. You as the seller will
complete the Property Questionnaire, with the help of your solicitor if
required. The Single Survey and Energy Report will be completed by a surveyor,
instructed by your solicitor.
ESPC will create an online Home Report for your property once all the
elements are complete. This can then be viewed by potential buyers on request
from you or your solicitor. You will have the option to order hard copy
versions. It may be useful to keep a copy at your property to have on hand for
viewers.
How will I pay for a Home Report?
To ease any upfront payment issues that may be incurred when a property is
marketed, ESPC Home Reports will have a range of finance 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 schedules or
any additional advertising) in the deferred payment, therefore incurring no
initial charges. Paying upfront will also be an option if you wish.