Property
News with Bruce de Wert
With the credit crisis now turned into a full blown recession our Lords and Masters in Edinburgh think this is the ideal time to “improve” the home selling process by making it more expensive and slowing it down. This is like buying a new car when you have just been told you still have a job but your hours are reduced and your wages cut.
Except that far from providing happy motoring the new car is more expensive to run and slows down your journey.
As from 1st December, with the few exceptions such as new homes, it will be illegal to market a property in Scotland without a Home Report consisting of a Single Survey, an Energy Report and a Property Questionnaire.
The Home Report is paid for by the seller who, through their agent, arranges for a Chartered Surveyor to provide the Single Survey and Energy Report and must, themselves, complete the Property Questionnaire.
The cost of a Single Survey and Energy Report will be set by individual surveying firms and vary according to the size of the property. It is thought prices will start from about £350, with about £100 per £100,000 worth of property on top of that. It is thought the average house fee will be between £500 and £700.
As for when you have to pay this will circle around the agreement between the seller and the firm compiling the Home Report. It is known that many legal firms may be able to arrange deferred payment.
This, howver, makes vulnerable anyone who wants to sell up before repossession as firms will not want to risk their money and such folk will be the least able to afford to pay up-front. So much for our MSPs being guardians of the poor.
Perhaps it would not be so bad if the Single Survey was going to achieve anything but there are a number of problems which make this unlikely. Firstly, purchasers may have had a number of surveys before they found one that suited them to present to you and me. In those circumstances, will you be willing to rely on the survey? Secondly, even if you are, will you be willing to rely on a survey that is out of date? There are different viewpoints out there as to the "shelf life" but the maximum is reckoned to be 12 weeks. Thirdly, it seems likely that lenders will be obtaining their own survey, anyway. Lastly, just because a survey raises an issue, does not mean that the seller has to do anything about it.
The Energy Report is supposed to focus the mind on how energy-efficient the house will be. People buy houses for myriad reasons, for instance, the design, the view but energy efficiency is not a reason that I have heard many folk mentioning. The legislators are in gambling that it will change our mindset. I doubt it.
The Questionnaire is actually a “good thing”. Most Solicitors have had their own version for some time because, since they have to do the legal work as well, they are aware that issues can emerge from the woodwork at the last minute. This is probably the only sensible part of this expensive legislation.
All buyers can ask for a copy of the home report. Copies from a website are likely to be free but hard copies may well be priced at anything up to £15 and have to be provided within nine working days.
Examples of the questionnaire, survey report and energy report are available on the website.
Bruce de Wert has 26 years of experience and is now Principal Solicitor and Estate Agent at Georgesons, Wick and Thurso.
Anyone who would like to comment or for this column to touch on any particular matter, please email me on bruce.de.wert@georgesons.co.uk.