HOME REPORTS - A CHANGE TO THE WAY WE DO BUSINESS

From 1 December 2008 all properties newly introduced to the market will require a Home Report.

1st December 2008 marks a fundamental change to the way in which properties are promoted for sale in Scotland.  From that date virtually all properties newly introduced to the market will require a Home Report to be prepared before marketing, and to be available to any genuine potential buyers.  Certain properties will be exempt including all brand new homes, seasonally occupied holiday accommodation and - importantly - homes already on the market prior to 1 December 2008.

A Home Report will contain three compulsory elements:

1. A Single Survey and Valuation carried out by a Chartered Surveyor. The survey will highlight any obvious building defects and, unlike its cousin the HIP or Home Information Pack in England and Wales, a statement of its current value.  A single survey will also include accessibility information for disabled people.
   
   
2. An Energy Report, again completed by a Chartered Surveyor and indicating within an Energy Performance Certificate how "green" and energy efficient the property is (in much the same way as for domestic appliances) and pointers for improvement.
   
   
3. A Property Questionnaire completed by the seller, usually with the assistance of the selling agent (and, where appropriate, the seller's solicitor) and incorporating useful household information including Council Tax banding, details of recent alterations, any preservation works with their relevant guarantees, utilities and other issues of relevance to a buyer such as factoring arrangements, boundaries and pre-emption rights (where applicable).
   
   

At the suggestion of the Council of Mortgage Lenders, a "Generic Mortgage Valuation Report" can also be provided alongside the Single Survey.  This effectively acts as a template for prospective purchasers' lenders and confirms whether the property provides suitable security for mortgage lending purposes.

Although assembling the component parts of the Home Report will inevitably take some time and incur significant costs, much of the preparation can take place at the same time as the property is made ready for the market. Typically, Home Reports are likely to cost from £500 to £1,500 or so depending on the size and value of the property concerned. Rettie & Co have arrangements in place with the most popular platforms for providing Home Reports and can specify individual firms of valuation surveyors to carry out the Single Survey where our clients have their own preferences.  Technically, the Home Report does not have a specific shelf life, although it should not be prepared more than 12 weeks prior to the property's first appearance on the market.  Properties equipped with a Home Report may only be taken off the market for up to four weeks without the need for a fresh Home Report to be provided.

Finally, even those properties already on the market as at 1 December 2008 (and therefore exempt from the provision of a Home Report) must provide an Energy Performance Certificate (EPC) if still available as at 4 January 2009 in order to comply with European Union directives.  We at Rettie & Co are happy to produce a fully compliant EPC for our existing client base using our in-house team of Chartered Surveyors.

For information on all aspects of the Home Report, please feel free to contact any of the agency team at Rettie & Co.  More detailed guidance is also available via web links to:

• The RICS (a helpful and concise pdf download is available via www.rics.org/scotland )
• The Scottish Government (go to www.homereportscotland.gov.uk)

Rettie & Co Ltd. Registered in Scotland No SC144330.

Registered Office Deuchrie, Dunbar, East Lothian, EH42 1TG.

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