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Home Reports

From 1st December 2008, houses coming on to the market, can only be advertised for sale, if they include a Home Report. This is a pack of three documents: a Single Survey, an Energy Report and a Property Questionnaire. The Home Report will be made available on request to prospective buyers of the home.

The Single Survey contains an assessment by a surveyor of the condition of the home, a valuation and an accessibility audit for people with particular needs.

The Energy Report contains an assessment by a surveyor of the energy efficiency of the home and its environmental impact. It also recommends ways to improve its energy efficiency.

The Property Questionnaire is completed by the seller of the home. It contains additional information about the home, such as Council Tax banding and factoring costs that will be useful to buyers. The Home Report contains a Single Survey, an Energy Report and a Property Questionnaire.

The Single Survey gives sellers detailed information about the condition and value of a home before it is marketed for sale. It also gives buyers better information about the condition and value of a home before they make an offer to purchase.

The Single Survey includes an accessibility audit that will make Scotland the first country to require that the accessible features of every home for sale are highlighted to potential buyers. This information will benefit parents with young children and older people, as well as disabled people.

The Energy Report gives a home's energy efficiency rating and its environmental impact in terms of carbon dioxide emissions.

It recommends ways to improve the building's energy efficiency and gives contact details for further advice and information about how to make a home more energy efficient and save fuel costs. The Energy Report helps home buyers to make 'green' choices, by comparing energy costs between homes and giving practical advice to reduce carbon emissions and save on energy bills.

The Property Questionnaire contains information for home buyers, solicitors and surveyors. It would include, for example: a home's council tax band, parking facilities, factoring arrangements, any local authority notices that affect it and alterations that have been made to the home.

This information will be useful for buyers before they decide whether to submit an offer to purchase a home. The Property Questionnaire will also reduce the risk of delay and difficulties in conveyancing.

Energy Performance Certificates

From January 4, 2009, all EU member states have an obligation under the Energy Performance of Buildings Directive (EPBD) to promote improvement in the energy performance of new and existing buildings.

This means there will be a requirement to provide an Energy Performance Certificate (EPC) to any prospective buyer or tenant of a property when it is either sold or rented out.

What is an Energy Performance Certificate?

An EPC is a document which states the energy efficiency of a building based on the standardised way the building is used and provides the building owner with a number of ways in which the efficiency could be improved.

Will this apply to all properties?

This requirement applies to all property types both dwellings and non-dwellings which are on the market at January 4, 2009. Dwellings which are being sold and subject to a 'Home Report' from December 1, 2008, will have an EPC provided as part of the document package, and there will be no need to take further action.

However, even if the property is not subject to a Home Report, an EPC will usually be required and appropriate steps to obtain one should be taken by the middle of December. Such action will ensure compliance with the legislation which comes into force on January 4, 2009.

Who can provide an EPC?

In Scotland, a list of organisations approved by Scottish Ministers may provide EPCs for existing buildings. EPCs produced by individuals not included on the list are invalid and could result in the building owner being prosecuted for non compliance.

More information on EPCs can be found on the Scottish Building Standards website.

Frequently Asked Questions for Sellers

1. What documents are included in the Home Report?
   The Home Report will include a Single Survey, an Energy Report and a Property Questionnaire.
2. I am thinking of selling my house soon. When do I have to provide a Home Report?
   Properties marketed for sale from December 1, 2008 in Scotland will need a Home Report.
3. Do I have to provide a Home Report if my house is marketed for sale prior to December 1, 2008?
   No, if you market your house for sale prior to December 1 you will not need to obtain a Home Report. However, if you take your house off the market anytime after December 1 and re-market it, you will have to make a Home Report available.
   
   Although you will not require a Home Report if your house is already on the market at 1 December, you will need to obtain an Energy Performance Certificate ("EPC") if your 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.
4. Should I rush to sell my house before December 1, 2008 to avoid the costs associated with the Home Report?
   Well, you could. And you might avoid the cost of the Home Report as a seller. But you would still have survey costs as a buyer of your next house! And as a buyer in the current system, you run the risk of having to pay for a surveys or valuations on a series of that you do not ultimately buy. So any saving by rushing to sell your house now may be minimal.
5. Who will compile a Home Report?
   The Home Report will be compiled by the seller's agent or the seller. A chartered surveyor or other provider (approved by Scottish Ministers) will provide the Single Survey and Energy Report. The seller of the house will complete the Property Questionnaire.
6. I am a private seller, and do not plan on using a solicitor or estate agent to market my house. Do I need a Home Report?
   Yes, under Part 3 of the Housing (Scotland) Act 2006, a person who is responsible for marketing a house must provide a Home Report to any prospective purchasers. To do this you will need to commission a chartered surveyor (or approved provider) to carry out the Single Survey and Energy Report. You must also complete a Property Questionnaire.
7. Are there any circumstances where I do not need to provide a Home Report?
   If you market your house for sale, you must obtain a Home Report. However, the duty to provide a Home Report does not apply if you (or your selling agent) reasonably believe that the person making the request (for a copy Home Report)

   • is unlikely to have sufficient means to buy the house in question
   • is not genuinely interested in buying the house
   • is not a person to whom the seller is likely to be prepared to sell the house (this does not allow people to discriminate, say on grounds of race)
8. Who pays for the Home Report?
   The seller is responsible for providing the Home Report. There is nothing in the legislation insisting that the buyer must reimburse the seller for the cost of the Home Report.
9. How much will a Home Report cost?
   The cost of a Single Survey and Energy Report will be set by individual surveying firms and will vary according to the size of the house. Sellers are advised to consider a number of quotes from different providers before making a decision. There should be very little, if any, costs associated with the Property Questionnaire as it is completed by the seller of the home.
10. How 'old' can the Home Report documents be when the house is put on the market for sale?
    The legislation says that the documents should be no more than 12 weeks old when the house is put on the market.
11. Will the Home Report have a specified shelf life? (i.e. should sellers have to pay for refreshed surveys if their houses 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. This reflects current practice for survey reports. Decisions as to whether any aspects of the Home Report need to be updated are for sellers, buyers and their professional advisers to take, depending on the circumstances of each case.
12. How will I pay for the Home Report?
    This depends on the agreement between the seller and the firm they ask to compile the Home Report. It may be useful to speak to a number of different providers to find the approach that best suits you.
13. What happens if the Single Survey identifies a significant problem with the condition of the house such as dry or wet rot? Does the seller have to rectify the problem?
    That is a decision for the seller. The seller may choose to rectify the problem or may for other reasons, market the house immediately. There is nothing in the legislation forcing the seller down one particular route. From the Single Survey report, the seller will at least be aware that there is a problem and have options to decide what to do about it.

Frequently Asked Questions for Buyers

1. How can buyers receive a copy Home Report?
   A Buyer should ask whoever is advertising the house for sale for a copy Home Report. This is usually an estate agent/solicitor, but could be another business or individual.
2. Will it cost buyers anything to obtain a copy Home Report?
   No, buyers will receive a Home Report free of charge, although they may have to pay a reasonable charge to cover the costs of copying and postage. If the seller isn't using an estate agent/solicitor, the buyer should be able to get a Home Report directly from the seller.
3. How quickly must a seller or their agent comply with a request by a prospective buyer for a copy of any or all of the Home Report documents?
   A person responsible for marketing a house must provide a copy of any or all of the documents within 9 working days.
4. If I buy the house, do I have to pay the seller back for the cost of the Home Report?
   This is a matter between the buyer and seller. There is nothing is the legislation that insists that the buyer of the house should reimburse the seller for the cost of the Home Report.
5. Are Home Reports required across Scotland?
   Yes. All houses marketed for sale in Scotland will require a Home Report, with only a few exceptions.
6. What can buyers do if a Home Report is not provided?
   Buyers should receive a Home Report within 9 working days of requesting it. Sellers may refuse to provide a copy in certain limited cases. These are where the seller believes that the person making the request:

   • could not afford the house
   • is not really interested in buying the house
   • is not a person to whom the seller would wish to sell the house (but this does not allow them to unlawfully discriminate against someone

   If a buyer believes that they are being denied a copy of the Home Report unlawfully, local authority trading standards officers are responsible for enforcement of these duties.