Marketing without a Home Report - Comments from the Scottish Government
9th March 2009
It has come to our attention that some selling agents may be marketing homes without a Home Report on the grounds that they can obtain one and make it available within 9 days of a request from a potential purchaser. However this approach does not comply with the law. The Home Report legislation requires that the person marketing the house (the seller or selling agent if one is used), must have the Home Report in their possession before placing the house on the market. The 9 day permitted period relates to the duty to provide, not to possess a Home Report.
Not giving the seller the opportunity to make judgements about marketing based on the information in the Report is to their disadvantage as a consumer. This approach may also be to the detriment of selling agents who do comply with the law.
The Society of Chief Officers of Trading Standards in Scotland (SCOTSS) is also aware of the situation. John Geddes, representing SCOTSS said, ‘SCOTSS is aware of the situation and takes complaints about non-compliance extremely seriously. SCOTTS will be recommending that Local Authority Trading Standards services carry out a market exercise to gauge the level of compliance. This would involve writing to any companies concerned to give them fair warning, outlining SCOTSS concerns and following up with a national programme of visits to Estate Agents and Solicitors.’”
Home Reports Scotland quoted in The Scotsman
22nd Nov 2008
BARCLAYS is to snub Scottish home buyers by refusing to accept Home Reports when they are introduced next month, The Scotsman can exclusively reveal.
As of 1 December, almost every property marketed for sale in Scotland will require a Home Report containing a single survey (including a valuation), an energy report and a property questionnaire (see box for more). But the Woolwich, the mortgage arm
of Barclays, has angered brokers and surveyors by declaring that it will not accept valuations from the Home Reports for the time being, requiring buyers to pay for a valuation from its own range. This effectively means those selling one property and buying another will have to pay twice.
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Open door for Home Report
24/09/2008
Consumers making the biggest financial decision of their lives deserve the most reliable information before they make a bid for a house, Communities Minister Stewart Maxwell said today.
Mr Maxwell said that the Home Report, the new system for buying and selling houses due to be introduced from December 1, will provide the best information for consumers.
He underlined that nearly all sellers are also buyers, so they will also benefit from the Home Report in the purchase of their next home.
The Home Report had, he noted, been universally welcomed by consumer groups. He welcomed signs of positive action by Scotland's property industry gearing up for the Home Report's introduction.
At least seven specialist Home Report providers are competing in the market to provide a service to sellers and their agents, and dozens of training sessions have been delivered for property professionals.
Meanwhile the Royal Institution of Chartered Surveyors (RICS) and the Council of Mortgage Lenders (CML) now intend to go beyond the specific requirements of the legislation by including mortgage valuation information.
This could help a prospective buyer to obtain a decision in principle from a lender - a response to recent market changes that have made lenders more cautious than in the past.
Mr Maxwell said:
"Scotland is not immune from the effects of the global economic downturn. That's why it is essential that those buying a house, one of the most important decisions that they will ever take, receive the best advice possible."
To those who do not embrace the idea of a Home Report I would ask, how can more information be anything other than a good thing for consumers? There is a momentum building and I'm delighted at signs of positive action by the property industry preparing for the Home Report introduction on December 1.
Our plans to introduce the Home Report have been backed by influential consumer groups such as the Scottish Consumer Council and Which?. They share our belief that serving the interests of consumers is paramount. I am also encouraged that the Royal Institution of Chartered Surveyors (RICS) and the Council of Mortgage Lenders are expanding the single survey element of the Home Report to include mortgage valuations.
It is a very positive development and another clear signal, alongside the development of Home Report products and financing options, of the market gearing up for December 1." |
Graeme Hartley, Director of RICS Scotland said:
"The Home Report will give lots of information upfront about a property making it a win-win situation for potential buyers."
The single survey and valuation in a Home Report can be trusted by both buyers and sellers. It will be carried out in an objective way by a highly trained Chartered Surveyor who is a member of RICS Scotland.
Chartered Surveyors are strictly regulated professionals who follow a strict code of conduct. They must have their own complaints handling procedure and professional indemnity insurance (PII).
There is an independent redress system and Chartered Surveyor ombudsman service available should buyers or sellers require them." |
The Home Report will contain three documents providing home buyers with more information than they have ever had. These documents are:
- A single survey prepared by a Chartered Surveyor containing detailed information on property condition, accessibility information and a valuation
- An energy report giving 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
- A property questionnaire to give prospective buyers useful information about the property, such as council tax banding, factoring costs and property alterations
December 1 was chosen on advice from lenders and selling agents as the best time to transfer to the new system.
A series of Podcasts on the Home Report is now also available at:
http://www.scotland.gov.uk/News/This-Week/Broadcast/Podcast/Home-Report |
