Home Reports
From 1 December 2008, residential property placed on the market for sale in Scotland will require a Home Report, containing three key documents providing prospective buyers with information about the property. Sales of newbuild homes are excluded.
The three key documents in a Home Report are:
Property Questionnaire
A Property Questionnaire completed by the Seller (probably with the assistance of their solicitor) containing information for buyers, the buyer’s solicitor and their surveyor. For example, the Property Questionnaire will provide information about Council Tax banding, alterations, additions and extensions, services, factoring costs and car parking arrangements.
Single Survey
The single survey will be completed by a surveyor and will provide information on the condition and value of a property. It will also contain an accessibility audit.
Energy Report
This part of the documentation stems from the implementation of an EU Directive on all building owners to provide an Energy Performance Certificate (EPC) when a building is "sold or rented out". The Energy Report will be completed by a surveyor and will provide recommendations for improving the energy efficiency of a property. It will include an indication of current and potential running costs for lighting, heating and hot water. The Report will also contain two graphs representing the current rating and demonstrating the possible score the property could gain if improvements were made, similar to the graphs found on white goods such as washing machines.
Home Reports are different from Home Information Packs (HIPS), introduced in England and Wales. Whereas in England standard searches are compulsory, HIPS do not need to include a property condition survey, as this is optional.
A copy of the Home Report must be provided to a potential buyer within nine days of it being requested. The Seller will be expected to meet the cost of the Home Report.
Although a Home Report must be no more than twelve weeks old when a house is put on the market, the legislation does not prescribe a "shelf-life", specifying a period of time during which the Report is valid. Buyers may be unwilling to rely on the Report, prepared for the benefit of a seller, and may continue to commission a private report. It remains to be seen what approach mortgage providers will take but it is doubtful whether they will accept Reports which are more than a few weeks old.