When you’re preparing to sell your residential property in Scotland you must have a Home Report ready before you put your property on the market. The Home Report is given to potential buyers directly or via your estate agent or solicitor and should be supplied within nine days of a request.
The Home Report has been required by law since its introduction in 2008. The three-section document comprises a single survey and valuation, a property questionnaire and an energy report. The document provides a clear and comprehensive overview of your property to enable buyers to make an informed decision on whether it’s right for them.
Its aim is to prevent nasty surprises, and to incentivise sellers to carry out repairs before marketing a property to increase the likelihood of sale. It is generally valid until the property is sold. A Home Report also prevents the wasted resources of multiple surveys and valuations being carried out on the same property.
Section 1 – The single survey and valuation
A visual inspection by a chartered surveyor outlines the condition, accessibility and any repairs required in your home so that potential buyers can understand what work might need doing. This covers everything from the outside of the property to the inside and rates components from 1) Satisfactory to 3) Essential work required and highlights any urgent repairs. The valuation is a guide for the buyer’s financial institution who is providing the mortgage.
Section 2 – The property questionnaire
The property questionnaire is divided into 16 categories of further information. These include the council tax band, issues from the past – such as fire or storm damage or asbestos, alterations or extensions made, details of specialist works or guarantees and details of any notices that might affect the property.
The more detailed information helps ensure no nasty surprises for buyers further down the line. It also means that questions about a property and its history are answered early in the sale process to reduce the risk of a sale collapsing.
Section 3 – The energy report
The final section summarises the property’s energy efficiency with an Energy Performance Certificate that rates the property and highlights energy use and average costs for heating, lighting and hot water.
The EPC will also rate the environmental impact of the property in terms of carbon dioxide emissions and includes details of who to contact for further advice on energy efficiency.
Exemptions
As a seller there’s a very limited range of reasons why you shouldn’t give a prospective buyer a copy of your Home Report, such as if you don’t believe they are seriously interested. There are also some properties that don’t need a Home Report. These include new houses sold off-plan or to their first occupiers, or seasonal holiday homes that can only be used at certain times of the year.
Even if your property is exempt from requiring a Home Report, you must still give the buyer an Energy Performance Certificate.