Frequently Asked Questions

The information provided below is intended to provide you with a bit more insight into Home Reports. If you have any further queries with regards to Home Reports or the services we offer, please do not hesitate to contact us.

• What is the date for introducing the Home Report to the market?
• What documents will be contained in a Home Report?
• What happens to houses already on the market on December 1, 2008?
• How does the Home Report in Scotland compare to Home Information Packs in England and Wales?
• What arrangements are in place over the coming months to ensure the smooth introduction of the Home Report to the market?
• What happens to properties in rural areas which often take longer to sell?
• What can buyers do if a Home Report is not provided?
• Are Home Reports required across Scotland?
• Will Home Reports be phased in for different sizes of property like they did in England and Wales with the Home Information Pack?
• Should house sellers rush to sell their homes before December 2008 to avoid the costs associated with the Home Report?
• How much will a Home Report cost and who pays?
• 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?
• What consultation has there been on the Home Report proposals?

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

Source: www.scotland.gov.uk