WHY IS A HOME REPORT A LEGAL REQUIREMENT FOR OPEN MARKET SALES?
In Scotland, under the Housing (Scotland) Act 2006, which came into force in December 2008, a property cannot be marketed for sale without a Home Report.
Home Reports were introduced to address various issues in the home buying process, including prospective purchasers having to pay for surveys on multiple properties. They are intended to make the buying process more transparent and fair by providing purchasers with clear information on the property and its condition.
It is the seller’s responsibility to ensure a valid Home Report is available for their property before marketing it on the open market.
The Home Report must be produced by a Chartered Surveyor and consists of the Single Survey and Valuation, Energy Performance Certificate, and Property Questionnaire.
Single Survey: A detailed assessment of the property’s condition. It highlights any necessary repairs and provides the market value of the property. However, this is not a full structural survey.
Energy Performance Certificate: Provides information on energy efficiency, usage, and potential energy costs. It also outlines what improvements can be made to increase efficiency.
Property Questionnaire: This is the only section of the Home Report completed by the seller. It provides practical information such as Council Tax banding, current utility suppliers, length of ownership, and many other useful details for buyers.
A Home Report is a requirement for the majority of mortgage lenders when approving a loan. While it does not have an official expiry date, many lenders consider it outdated after three months, at which point the seller may be asked to arrange an update.
The Home Report provides essential information on the condition of the property, energy efficiency, and market value, allowing buyers to make an informed decision. It benefits both buyers and sellers from the outset of the sales process and should help mitigate any disputes or issues arising during the conveyancing process.