Home Reports Introduction
Members will be aware that the Society has represented both the interests of members and the public in relation to the proposed "Single Survey" which subsequently became the "Purchasers Information Pack" and has now been formally launched by the Scottish Government as Home Reports. In essence the Government plan to require all property (with certain exceptions including in particular new build houses) which is marketed for sale to have a Home Report available for purchasers.
Home reports contain three elements -- Single Survey -- Energy Report -- Property Questionnaire. The Society regard the adoption of their suggestion that the Report include a Property Questionnaire completed by the seller giving useful and practical information as a significant improvement on the original proposals which included "hard information" including searches which would be of limited value to the public but significant expense to sellers.
The Regulations which were published in March stipulate a launch date of 1 December 2008 and the Scottish Government have assured the Society that Home Reports will be mandatory in regard to property sales on and after 1 December 2008.
What is the Society doing for me?
Following a tender exercise earlier this year, the Society has appointed Home Report providers OpenHouse to launch The Law Society of Scotland Home Report solution. This fully compliant web-based service has been designed especially for solicitors' firms and offers a range of benefits such as preferential payment terms and the ability to order additional services in one transaction. Members can find out more about the service and register for updates at the Society Home Report portal.
Guidance
The Conveyancing Committee of the Law Society of Scotland are consulting on Guidance in relation to Home reports.
The Society has issued extensive guidance to assist members with compliance of the new Home Report legislation.
Legislation
Part 3 of The Housing (Scotland) Act 2006 ‘Provision of Information on Sale of House’ says that when a house is marketed for sale in Scotland, certain documents have to be made available. It gives Ministers power to set regulations about what those documents are, along with some other details about how the documents need to be prepared and provided.
The Housing (Scotland) Act 2006 (Prescribed Documents) Regulations 2008 sets out which documents sellers must give to prospective buyers. These are a survey report (the Single Survey and an Energy Report) and a Property Questionnaire, which together form a ‘Home Report’. A reasonable charge may be made for the provision of such reports to purchasers. Regulation 4(1)(f) of the Anti-Money Laundering Regulations 2007 have yet to be amended by the Westminster Government to exclude the provision of Home Reports from those regulations in line with Home Information Packs in England which are excluded.
The Housing (Scotland) Act 2006 (Amount of Penalty Charge) Regulations 2007 The person responsible for marketing a house must have a Home Report and must give a copy to any potential buyer who asks for it. Anyone who does not do this may get a penalty charge notice from an authorised officer of a local authority. In cases like this, the regulations prescribe a penalty charge of £500.
The Housing (Scotland) Act 2006 (Consequential Provisions) Order 2008
Article 3 of this Order provides for liability on the part of the person who prepared the report to the buyer of the house.
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.
download sample Single Survey
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.
download sample Energy Report
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.
download sample Property Questionnaire
