A Home Report is required before most residential properties are marketed for sale in Scotland. However, there are a small number of exceptions.
Understanding when a Home Report is not required in Scotland can help sellers avoid unnecessary costs. It can also prevent a property from being marketed without the correct documentation. The rules are specific, so sellers should not assume that an unusual property or private sale is automatically exempt.
Do Most Properties in Scotland Need a Home Report?
In most cases, yes. A seller or selling agent must usually have a Home Report before making it public that a residential property is for sale.
The Home Report contains:
- a Single Survey and valuation
- an Energy Report
- a Property Questionnaire
These documents give potential buyers information about the property’s condition, value, energy efficiency and history.
You can read our Home Report overview for a fuller explanation of what each document includes.
Which Homes May Not Require a Home Report?
There are several property types identified by Scottish Government guidance that may be exempt.
New-build homes
A new property, sold off-plan or to its first occupier, may not be required to have a Home Report.
This exemption applies because new build properties typically come with builder warranties, and the property has not previously been used as a home. It does not mean that every relatively new property is exempt. Once a home has been occupied, a future sale will normally require a Home Report.
Newly converted properties
A newly converted home may be exempt if it has not yet been used in its converted form.
For example, this could apply where a commercial building has been converted into flats that are being sold for the first time.
Dual-use properties
A Home Report may not be required where a property is used for both residential and non-residential purposes and is marketed for mixed or non-residential use.
The circumstances matter. A seller should therefore obtain professional advice about whether this applies to their circumstances.
Certain seasonal holiday properties
Some seasonal or holiday accommodation may be exempt where a planning condition limits how and when it can be occupied.
This does not generally include an ordinary second home or holiday home that could be occupied throughout the year.
Homes marketed before December 2008
Properties that have remained on the market continuously since before 1 December 2008 may also be exempt. However, there are very few cases where this would apply.
Are There Other Technical Exemptions?
The legislation also contains several less common exemptions.
These can include:
- portfolios of properties being sold together rather than individually
- homes sold as part of a wider commercial or mixed-use property
- unoccupied properties that pose a serious safety risk and are marketed as unsuitable for occupation
- properties marketed for demolition and redevelopment where the necessary permissions are in place
These exemptions depend on how the property is being used, marketed and sold. Therefore, legal advice should be sought before relying on one.
What About a Private or Off-Market Sale?
The legal requirement is connected to marketing a property for sale. Therefore, a genuinely private transaction that is not marketed publicly may fall outside the usual Home Report requirement.
However, the definition of marketing is wider than placing a property on an online portal. An estate agent or solicitor communicating that the home is available may be enough to trigger the requirement.
A private sale should be discussed with the seller’s solicitor before any advertising or marketing begins.
Is an EPC Still Required?
An exemption from the full Home Report does not necessarily remove the need to provide other property information.
Scottish Government guidance states that sellers must still provide an Energy Performance Certificate where a property does not require a Home Report.
A buyer or mortgage lender may also request a separate survey or valuation before proceeding. Being exempt from the Home Report rules does not mean that the property’s condition and value will not need to be assessed.
How Can Sellers Check Whether an Exemption Applies?
Sellers should confirm the position before marketing the property. Speak to your solicitor, selling agent or an experienced Home Report provider if you are unsure.
The exemptions are limited and most residential properties for sale in Scotland still require a Home Report.
At Home Report Company, our experienced Chartered Surveyors prepare clear and reliable Home Reports for properties across Scotland.
