Q1 What documents are 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:
The Energy Report contains an assessment by a surveyor of the energy efficiency of the home and its environmental impact (including an Energy Performance Certificate) . 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.
Q2 - 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, if the house is taken off the market anytime after December 1 and re-marketed for sale it, a Home Report is required.
If a house has been on the market prior to 1 December, the seller will need to obtain an Energy Performance Certificate ("EPC") if the house will still be on the market after January 4, 2009. This is because there is a separate duty arising from European law to make the EPC available to any prospective buyer of the house after January 4, 2009.
Q3 - 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'.
Q4 - 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 Scotland |
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Compulsory documents: 1. Energy Performance Certificate (to be introduced in compliance with EU Directive 2002/91/EC and delivered by trained Domestic Energy Assessors) 2. Sale statement 3. Searches 4. Evidence of title 5. Leasehold and commonhold documents 6. Home Information Pack Index Optional documents: 1. Home Condition Reports 2. Legal summary 3. Home use/contents forms | Compulsory documents: 1. Single Survey - to include: - Information on the type, construction, accommodation, age and neighbourhood
- Report on the condition of the property
- Basic accessibility information (such as wheelchair access, number of steps to the property)
- A market valuation
2. Energy Report - to include: - An indication of current carbon dioxide emissions resulting directly or indirectly from energy use within the home
- An indication of current and potential (if the recommended measures were implemented) energy use
- An indication of current and potential (if the recommended measures were implemented) energy efficiency of the house
- A list of recommended measures to improve the energy efficiency of the home.
3. Property Sale Questionnaire This document will be completed by the seller and provide information on issues such as: - Council Tax banding
- Car Parking arrangements
- Central Heating
- Factoring arrangements
- Alterations / additions/ extensions
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Q5 - 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. The legislation, however, does not require a refresh.
Q6 - What can buyers do if a Home Report is not provided?
Buyers should receive a Home Report within nine days of requesting it. If a buyer believes that they are being denied a copy of the Home Report unlawfully, they should consult with their local authority trading standards authority (in Scotland this is local authorities) which has responsibility for enforcing these duties. If they deem 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. If a person wished to appeal against the issue of a penalty charge notice, they could appeal to the local authority and, if still dissatisfied, to appeal to the Sheriff.
Q7 - Are Home Reports required across Scotland?
Yes. All homes marketed for sale in Scotland, with only limited exceptions such as newly built homes, require a Home Report from 1 December 2008.
Q8 - How much will a Home Report cost and who pays?
The seller is responsible for the cost of a Home Report. Costs for a Home Report have been set by individual surveying firms and Home Report providers.
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.
Q9 - Does the Home Report have a specified shelf life, and do sellers have to pay for refreshed surveys if their homes have not sold after a few months?
The legislation does not impose a set shelf life or validity period for any of the Home Report documents. It also does not require that a Home Report is refreshed. Decisions as to whether any aspects of the Home Report need to be refreshed/updated are for sellers, buyers and their professional advisers to take, depending on the circumstances of each case. The refresh is not an additional survey, but usually a simple re-inspection.
Q10 - 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.
Q11 - Can I use the Scottish Government's Home Report or Saltire logos on my Home Report materials?
The Home Report logo should not be used by a practitioner to endorse:
a specific product, such as the Single Survey, Property Questionnaire and Energy Report PDFs;
industry bodies and private organisations;
industry products like Home Report provider services; or
marketing campaign/collateral to sell the practitioner's products.
This means that the logo should only appear on approved Scottish Government materials. The Scottish Government will shortly issue materials for use by practitioners, which will include an explanatory note about Home Reports. This will be a self-standing item branded with the Home Report and Scottish Government logos. This will be available to download or through the mailbox on homereportscotland.gov.uk. It should not be modified or adapted by the practitioner.
Further information is available here.