What is a Home Report?
The Home Report was introduced in Scotland in December 2008. Anyone who puts their property on the market for sale in Scotland must obtain a Home Report which is available for prospective buyers and their agents for the duration that the property is for sale.
There are some exceptions to the rule; new-build properties and any properties where the sale is off-market (no advertising of the property takes place at all). However, these are generally minority cases and most sellers must have the Home Report carried out and available to potential buyers prior to the property going on the market.
Let’s keep it simple; a Scottish Home Report is a pack which provides information about the condition and value of a property. The Scottish Government set out that it must legally contain three sections.
What’s Included in a Home Report?
Scottish Law and Home Reports
As of the 1st December 2008 it is now mandatory that when selling residential property in Scotland you provide prospective purchasers with a Home Report. This report is instructed by the seller of the property or their agent and consists of three mandatory documents.
“Everyone selling their home needs to provide a Home Report to prospective buyers.”
The video explains what is included and how these are conducted.
Home Reports make the process of buying a new home more transparent by removing much of the uncertainty over what price to bid and accept. A Home Report includes a Property Questionnaire prepared by the seller plus a Single Survey and Energy Performance Certificate prepared by a chartered surveyor.
If you are a buyer, the solicitor doing the purchase may instruct their own surveyor to carry out a valuation of the property. This is a separate document for the purpose of the lender (if the buyer is borrowing funds to purchase the property) to satisfy their needs that the right the right price for the property is being paid. The mortgage valuation report involves a brief inspection (usually less than 20 minutes) and should not be confused with a survey. The report is for the lender and usually only two or three pages in length.
What’s NOT included in a Home Report?
Sellers are often under the impression that the Mortgage Valuation is part of the Home Report, but the Government states that it is not a requirement to provide it if you are the seller, so be sure that (as the seller) you don’t end up paying a higher price for a Home Report which includes a MVR as lenders will more often than not instruct their own surveyor to carry this out.
Who will put together the Home Report?
If you’ve hired a selling agent to help you sell and market your property, they may be able to carry out your Home Report for you. However, the single survey and energy report must be carried out by a qualified surveyor. You will be responsible for filling out the property questionnaire.
If you are selling your property without the help of a selling agent, you’ll need to commission a surveyor yourself. You can find a surveyor through the Royal Institution of Chartered Surveyors (RICS) website, on which we are listed.
What if the Home Report highlights an issue?
Single Survey
This is a detailed report on the condition and value of the property. It is intended to provide both the seller and purchaser with detailed information about the property’s condition and value before offers are submitted. In addition, this document contains an accessibility information section.
The condition of the property is separated into three categories:
Category 1
No immediate repair is needed
Category 2
Repair or replacement requiring future attention, but estimates are still advised.
Category 3
Urgent repairs or replacement are needed now. Failure to deal with them may cause problems to other parts of the property or cause a safety hazard. Estimates for repair or replacements are needed now.
Why Choose Us?
- Prices from £200
- Flexible appointments to suit you
- Stress-free process
- Offices across Scotland
- Appointments within 24 hours
- You can trust us 100%
- All surveyors are RICS registered
Energy Performance Certificate
An EPC is a Certificate which states the energy efficiency of a building based on the standardised way in which a building is used. CO2 ratings are shown in bands from A-G. A being very efficient, G being very inefficient. The performance of the measured building is benchmarked against current Building Standards and recommended cost effective improvements.
Property Questionnaire
The property questionnaire is completed by the seller or their agent asking about their ownership of the property and can be done online or offline. It provides a range of useful information, for example the council tax band, length of ownership, existing service providers, parking facilities and alteration commentary.
Frequently Asked Questions
Following the inspection at the property we aim to have your report ready within two working days; with the draft report being sent to you the next working day for your approval then the completed report thereafter.
The property seller is responsible for providing and paying for the Home Report. There is nothing in the legislation insisting that the buyer must reimburse the seller for the cost of the Home Report.
We also keep our overheads low, that doesn’t mean you get a lesser service, in fact in many cases our clients say our service level is some of the highest within the marketplace. We just work smarter, more effectively and without the large overheads like some firms.
New housing. New housing includes homes that may be sold ‘off-plan’ to the first purchaser or sold to the first occupier. Any subsequent sale of a home will not be exempt even if it has a certificate from, for example, the National House-Building Council (NHBC).
Newly Converted Premised. This means a property that is being or has been, converted to a home if it has not previously been used in its converted state.
Right to Buy Homes. As the sale of a home to a tenant under the ‘Right to Buy’ does not involve marketing, the duty to provide a Home Report does not apply.
Seasonal and Holiday Accommodation. This exception refers to seasonal and holiday accommodation (as defined in planning legislation), which only has permission to be used for less than 11 months in any year. It does not include second homes or holiday cottages that could be used all year if the owner so chose.
Mixed Sales. This occurs where a home is sold with one or more non-residential properties (provided it is clear that the seller does not intend to consider an offer to buy the home separately from the non-residential property).
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 or properties to be demolished.
Commercial properties.