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Keeping your house in order - a guide to the Home Reports

The much-heralded arrival of Home Reports will mean increased costs for sellers at a time when the housing market is already facing tough times. Assuming current plans go ahead, it will be imperative to know what it’s all about.

Much has been written and reported on the planned introduction of Home Reports in Scotland following the rollout of Home Information Packs in England and Wales at the end of last year.  At the time of writing the Government looks set to move forward with its plans for implementation in Scotland, Associate Phaedra Mercer discusses why it is important to understand the possible implications.

Being clear on the responsibilities of those involved is also key to successfully navigating the complexities of buying and selling property.  Under current plans, from 1st December 2008, a seller must provide a Home Report when marketing a residential property in Scotland. It is the seller who is responsible for obtaining the Home Report and for bearing the cost (likely to be in the region of £400-£800 plus VAT, although this has yet to be confirmed).

Sellers or their agents must make the Home Report available within nine calendar days of any

request although there are a few limited circumstances where a seller may refuse to comply with the request. Failure to comply could lead to a fine for the seller of £500.  The Home Report is made up of three main parts:

1. Survey

This section is prepared by a Chartered Surveyor and provides a report on the condition of the property along with a valuation, as well as commenting on its accessibility. The Royal Institution of Chartered Surveyors is still developing its policy setting out the exact terms of the Survey and the obligations of the Surveyor. It is understood that a prospective purchaser will not be permitted to communicate with the Surveyor or discuss any part of the Survey

or the property with the Surveyor. 

2. Energy Efficiency Report

This part of the report is also prepared by a Chartered Surveyor. It includes an assessment of the energy efficiency of the property and is likely to contain recommendations on possible

improvements.  It is also worth noting that Energy Efficiency Reports will be required for new residential leases from 1st January 2009.

3. Property Questionnaire

This part of the report is completed by the seller and contains general information about the property such as the relevant council tax band, parking arrangements, details of any alterations or works carried out in the past, details of any factor/residents association, information about the heating system and services within the property.

The documents in the Home Report should be no more than 12 weeks old at the time at which the property is put on the market.  Whether or not these documents will need to be updated, for example, if a property is slow to sell, will depend on individual circumstances.  It is important for purchasers to be aware that a lender may not accept the Home Report, requiring an independent survey, the cost of which (in most cases) is likely to then be the responsibility of the purchaser.  There are a number of exceptions to the duty to provide a Home Report including but not limited to: ‘new-build’ properties purchased from the developer; a sale to a tenant under the ‘Right to Buy’ legislation; seasonal and holiday accommodation; purchase of a portfolio of residential properties; private sales; and unsafe properties.

With so many uncertainties surrounding Home Reports and details yet to be pinned down, it

will be all the more important for those planning to buy or sell property within the next few

months to take advice from a solicitor or estate agent regarding the timing of their purchase or sale and the procedure for obtaining Home Reports.

 For more information, please contact Phaedra.Mercer@turcanconnell.com or call 0131 228 8111.

Turcan Connell is happy to assist clients in ordering Home Reports.

To visit the Scottish Government's website to find about more about plans for Home Reports, click  here.

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