When selling a property in Scotland, the law requires that some very specific information is given to a potential buyer as part of the sales process. This information is contained in what is called a Home Report which became a requirement on the 1st of December 2008 under part 3 of the Housing (Scotland) Act 2006. In this article we will take a closer look at Home Reports and detail what they should include.
Where do I need a Home Report?
Home Reports are only required in Scotland at the present time.
When is a Home Report needed?
A home report needs to be available within 9 days of a property being marketed for sale and needs to be given to any genuine potential buyer.
Exceptions to Home Report requirements
A home report is not required if:
- The property has been on the market since before the 1st December 2008
- The property is being sold off plan or to the first occupier
- Newly converted properties that have not been used in their converted state
- Properties being used for domestic and non-domestic purposes
- Seasonal holiday homes
What is needed in a Home Report?
The home report should contain 3 main things:
- Property questionnaire. This is completed by the seller and covers detailed information on the property that only the owner might know such as whether the property has ever been flooded or if there have been any issues with damp or wood rot; what council tax band the property is in, any alterations or specialist work that has been carried out and any structural damage. It is a lengthy and very detailed document.
- Single Survey. These were introduced to give a potential buyer details on the condition of the property before agreeing a purchase. The survey has to be carried out by an RICS registered surveyor and provides details on the condition and, when requested, the valuation of the property. The surveyor, in the report, will clearly list any specific areas of attention as far as the condition of the property is concerned.
- Energy Report. The energy report can be generated by an RICS surveyor as part of the single survey. The report will rate the energy efficiency of the property, give details on the environmental impact in terms of CO2 and also give a list of measures that could be carried out to improve the energy efficiency of the property. The energy report is valid for 10 years.
Does my Home Report expire?
There are no official expiry dates on Home Reports but when putting a property up for sale, the Home Report should not have been compiled more that 28 days before the property is marketed. If the sale progresses slowly, however or the property is on the market for a protracted period, typically greater than 3 months, a replacement Home Report might be required.
Who pays for a Home Report?
The Home Report is the responsibility of the person marketing the property and in most cases the cost cannot be passed on to the buyer so is the responsibility of the seller. A Home Report can cost from £585 to £820 depending on the property.
Help and Support
If you need further assistance understanding Home Reports or any other aspect of selling your home, our team of local property experts are on hand to help you. Click here to find your nearest office.
