HOME REPORTS
The 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’.
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 Regulations
”On the market” means the date at which it is made public that a house is or may be available for sale. “Made public” means when it is advertised or otherwise communicated to the public.
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.
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Who can prepare the mandatory documents? |
The Single Survey and Energy Report can be prepared by an RICS surveyor.
The Property Questionnaire can be completed by the seller or someone authorised by the seller to complete it on their behalf.
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How old can the documents in the Home Report be? |
Information in the documents must not be more than 12 weeks old when the property is put on the market. A seller can withdraw a property for up to 28 days and remarket without having to provide updated documents.
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What do we do if someone asks for a copy of the Home Report? |
The person marketing the property must comply with any request from a potential buyer for a copy of the Home Report.
They have 9 working days to respond to such a request.
The Act only demands that this be done if the person making the request is someone the seller believes may actually buy the house. i.e. someone who - has sufficient means - is genuinely interested - is someone to whom the seller would sell
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Can we email the Home Report to them? |
An electronic copy is only sufficient if the potential buyer agrees in writing to receiving it in that form.
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Can we charge for a copy of the Home Report? |
The person marketing the property can charge a reasonable sum which should not exceed the cost of producing the hard copy, post and packaging.
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When is a Home Report not required? |
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New Housing |
Homes sold “off-plan” to first purchaser or to first occupier |
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Newly converted premises |
New conversions not previously used in their converted state |
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Sales involving no marketing |
Includes: Private sales Properties without vacant possession Right to buy properties |
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Seasonal and holiday accommodation |
Refers only to properties with permission for use of less than 11 months in any year |
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Portfolio of residential properties |
A home which is to be sold along with one or more other homes as one unit |
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“Mixed sales” |
Residential and non-residential property sold as one unit |
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Dual use of a dwelling house |
Where a property is used for both residential and commercial purposes |
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Unsafe properties |
Properties marketed as unsuitable for occupation in their present condition |
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Properties to be demolished |
Properties marketed with the necessary consents for demolition and re-development |
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What happens if you break the rules? |
Someone found to be in breach of the legislation may have a £500 penalty charge served on them by their local Trading Standards office.
For further information go to www.homereportscotland.gov.uk |