FAQs
FAQ for sellers
FAQ for buyers
FAQ for the Home Report
The following information is reproduced from the Scottish Government Website.
Sellers
Q1 - What documents are included in the Home Report?
A - The Home Report will include a Single Survey, an Energy Report
and a Property Questionnaire.
Q2 - I am thinking of selling my house soon. When do I have to provide
a Home Report?
A - Properties marketed for sale from December 1, 2008 in Scotland
will need a Home Report.
Q3 - Do I have to provide a Home Report if my house is marketed for
sale prior to December 1, 2008?
A - No, if you market your house for sale prior to December 1 you
will not need to obtain a Home Report. However, if you take your house
off the market anytime after December 1 and re-market it, you will have
to make a Home Report available.
Q4 - Should I rush to sell my house before December 1, 2008 to avoid
the costs associated with the Home Report?
A - Well, you could. And you might avoid the cost of the Home Report
as a seller. But you would still have survey costs as a buyer of your
next house! And as a buyer in the current system, you run the risk of
having to pay for a surveys or valuations on a series of that you do
not ultimately buy. So any saving by rushing to sell your house now
may be minimal.
Q5 - Who will compile a Home Report?
A - The Home Report will be compiled by the seller's agent or the
seller. A chartered surveyor or other provider (approved by Scottish
Ministers) will provide the Single Survey and Energy Report. The seller
of the house will complete the Property Questionnaire.
Q6 - 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 house must provide a Home Report
to any prospective purchasers. To do this you will need to commission
a chartered surveyor (or approved provider) to carry out the Single
Survey and Energy Report. You must also complete a Property Questionnaire.
Q7 - 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 house in question
- is not genuinely interested in buying the house
- is not a person to whom the seller is likely to be prepared to sell the house (this does not allow people to discriminate, say on grounds of race)
Q8 - 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.
Q9 - 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
house. Sellers are advised to consider a number of quotes from different
providers before making a decision. There should be very little, if
any, costs associated with the Property Questionnaire as it is completed
by the seller of the home.
Q10 - How 'old' can the Home Report documents be when the house is
put on the market for sale?
A - The legislation says that the documents should be no more than
12 weeks old when the house is put on the market.
Q11 - Will the Home Report have a specified shelf life? (i.e. should
sellers have to pay for refreshed surveys if their houses have 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.
Q12 - How will I pay for the Home Report?
A - This depends on the agreement between the seller and the firm
they ask to compile the Home Report. For further information please
contact us.
Q13 - What happens if the Single Survey identifies a significant problem
with the condition of the house such as dry or wet rot? Does the seller have
to rectify the problem?
A - That is a decision for the seller. The seller may choose to rectify
the problem or may for other reasons, market the house 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.
Buyers
Q1 - How can buyers receive a copy Home Report?
A - A Buyer should ask whoever is advertising the house for sale
for a copy Home Report. This is usually an estate agent/solicitor, but
could be another business or individual.
Q2 - Will it cost buyers anything to obtain a copy Home Report?
A - No, buyers will receive a Home Report free of charge, although
they may have to pay a reasonable charge to cover the costs of copying
and postage. If the seller isn't using an estate agent/solicitor, the
buyer should be able to get a Home Report directly from the seller.
Q3 - How quickly must a seller or their agent comply with a request
by a prospective buyer for a copy of any or all of the Home Report documents?
A - A person responsible for marketing a house must provide a copy
of any or all of the documents within 9 working days.
Q4 - If I buy the house, do I have to pay the seller back for the cost
of the Home Report?
A - This is a matter between the buyer and seller. There is nothing
in the legislation that insists that the buyer of the house should
reimburse the seller for the cost of the Home Report.
Q5 - Are Home Reports required across Scotland?
A - Yes. All houses marketed for sale in Scotland will require a
Home Report, with only a few exceptions.
Q6 - What can buyers do if a Home Report is not provided?
A - Buyers should receive a Home Report within 9 working days of
requesting it. Sellers may refuse to provide a copy in certain limited
cases. These are where the seller believes that the person making the
request:
- could not afford the house
- is not really interested in buying the house
- is not a person to whom the seller would wish to sell the house (but this does not allow them to unlawfully discriminate against someone
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 these duties.
The Home Report
Q1 - What is the date for introducing the Home Report to
the market?
The date for the launch of the Home Report is Monday 1 December 2008.
The rationale for choosing this date is that in December the property
market is traditionally very quiet, which gives property professionals
some time during a quiet period to familiarise themselves with the practical
aspects of the new system.
Q2 What documents will be contained in a Home Report?
A Home Report must contain a Single Survey, with Energy Report, and
a Property Questionnaire.
The Single Survey will contain:
- 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 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.
The Property Questionnaire will be completed by the
seller of the home. It contains information about the home that will
be useful for buyers.
Q3 - What happens to houses already on the market on December 1, 2008?
Sellers of such properties will not have to provide a Home Report.
However, beyond the date of introduction, there will be a clear incentive
for sellers who do not have to offer the Home Report to do so, as they
will face buyer expectation for it and competition from sellers of other
properties who are offering it.
Q4 - What do we mean by 'marketing' a house in this context?
Section 119 of the Housing (Scotland) Act 2006 defines the marketing
of a house as follows:
'A house is on the market when the fact that it is or may become
available for sale is, with a view to marketing the house, made public
in Scotland by, or on behalf of the seller. A fact is made public when
it is advertised or otherwise communicated (in whatever form and by
whatever means) to the public or a section of the public'.
Q5 - How does the Home Report in Scotland compare to Home Information
Packs in England and Wales?
The two approaches are quite different. Home Information Packs have
been introduced in England and Wales to avoid the risks of delayed and/or
failed bids and to reduce the existence of gazumping and also to provide
better information earlier in the transaction process. They do not include
a valuation or surveyor's report. In England and Wales, Domestic Energy
Assessors will provide the Energy Performance Certificate. The other
documents in the pack are assembled by Home Information Pack providers,
such as estate agents.
Buyers in Scotland will have more and better information about properties
before they make an offer to purchase. At present a high percentage
of buyers base their decision on a valuation report, which gives little
if any useful information about the condition of the house.
Better information about condition will help the buying decision
and will also encourage greater attention to repairs and maintenance
in the private sector. The surveying profession will produce both the
Single Survey and Energy Report - going with the grain of the existing
system. The seller of the property will complete the Property Questionnaire.
The table below illustrates the differences in the two approaches:
Home Information Packs England and Wales |
Home Report |
Compulsory documents: |
Compulsory documents:
2. Energy Report - to include:
3. Property Sale Questionnaire
|
Q6 - What arrangements are in place over the coming months
to ensure the smooth introduction of the Home Report to the market?
The Home Report Implementation Group will be involved in disseminating
information to firms involved in the house buying and selling process.
More details on these activities will follow during 2008. The Scottish
Government is preparing a publicity package for making members of the
public aware of the introduction of the Home Report in advance of December
2008.
Q7 - What happens to properties in rural areas which often take longer
to sell?
In the circumstance where a house has been on the market for a long
period since the Single Survey was undertaken, it is open to the seller
to commission the surveyor to 'refresh' the Single Survey in order to
attract more buyers. If that has not happened, a potential buyer may
choose simply to get an updated valuation, whilst benefiting from the
information on property condition in the Single Survey and the rest
of the information in the Home Report.
Q8 - What can buyers do if a Home Report is not provided?
Buyers should receive a Home Report within nine working days of requesting
it. If a buyer believes that they are being denied a copy of the Home
Report unlawfully, local authority trading standards officers are responsible
for enforcing these duties. If the Trading Standards Officer deems that
the seller or selling agent is in breach of their duties under the Housing
(Scotland) Act to possess the Home Report documents and provide them
to prospective purchasers, then a penalty charge notice may be issued.
The amount of penalty charge is £500 as a debt owed to the local
authority.
Q9 - Are Home Reports required across Scotland?
Yes. All homes marketed for sale in Scotland, with only limited exceptions
such as newly built homes, will require a Home Report from 1 December
2008.
Q10 - Will Home Reports be phased in for different sizes of property
like they did in England and Wales with the Home Information Pack?
No. The duty to provide Home Reports will apply to all homes from
1 December 2008.
Q11 - Should house sellers rush to sell their homes before December
2008 to avoid the costs associated with the Home Report?
If they did, they might avoid the cost of the Home Report as a seller,
but they would still have survey and valuation costs as a buyer of their
next home and they run the risk of having to pay for a series of surveys
or valuations for homes they don't ultimately buy.
Q12 - How much will a Home Report cost and who pays?
The seller is responsible for the cost of a Home Report. As sellers
are normally also buyers, the additional costs for most will be the
cost of the Single Survey over a Mortgage Valuation report. Fees scales
for the Single Survey (including the Energy Report) will be set by individual
surveying firms according to the size of the home. They are likely to
be similar to the fees scales for the existing 'Scheme 2 Homebuyer Survey
and Valuation' for most homes.
First-time buyers will benefit particularly as the cost of the survey
falls to the seller. There is nothing in the legislation that insists
that the successful buyer should reimburse the seller for the cost of
the survey. There is likely to be a minimal or zero cost for the Property
Questionnaire as it is filled in by sellers themselves.
Q13 - Will the Home Report have a specified shelf life, and will sellers
have to pay for refreshed surveys if their homes have not sold after a few
months?
The legislation does not impose a set validity period for any of
the Home Report documents.
This reflects current practice for survey reports. Decisions about
whether 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.
Q14 - What consultation has there been on the Home Report proposals?
The proposals and legislation for the Home Report have been subject
to a number of public consultations and discussion with bodies representing
the interested professions over the past few years. Advisory groups
involved in developing the proposals have included representation from
the Royal Institution of Chartered Surveyors, the Law Society of Scotland,
the National Association of Estate Agents, the Scottish Consumer Council
and the Council of Mortgage Lenders.
