Single survey rules open for comment

Executive intends to press ahead with compulsory scheme

News, 20 February 2007

A consultation begins today on draft regulations under which, from late next year, houses for sale will have to be marketed with both a single survey and a property sale questionnaire provided by the seller in advance.

Marketing a property without providing the proper documentation will incur a £500 penalty.

The Executive's policy aims in requiring the information are to improve the condition of the housing stock through better information, to reduce the amount of money being wasted on multiple surveys and valuations, and to remove the difficulties caused by artificially low upset prices.

The regulations, to be made under part 3 of the Housing (Scotland) Act 2006, will also provide for an energy consumption report on the property to comply with new EU rules.

The information provided will have to be not more than 12 weeks old when the property is marketed. However ministers have decided against providing that it shall be deemed out of date after the property has been on the market for a certain time.

"Common sense" to be informed

Deputy Communities Minister, Des McNulty said that the single survey and property sale questionnaire would make Scotland's property market fairer for everyone.

"We want to ensure that both buyers and sellers have better information about the condition and value of houses before offers are made. The single survey will do this. And the property sale questionnaire will reduce the risk of delay and difficulties in the conveyancing process."

Describing it as "common sense" that buyers should have good, reliable information before putting in an offer, he added:

"Arguments that an offer 'subject to survey' is a viable alternative to the Single Survey are misleading and not in either the buyer's or seller's best interest. In this approach the buyer submits an offer before any professional even goes near the property to inspect and make a valuation. That is not how it should be."

Society's concerns

The Law Society of Scotland repeated its support for the property sale questionnaire, and its concerns that the single survey "may create new problems to replace those that it set out to solve". Janette Wilson, convener of the Conveyancing Committee, said:

“The fact that any property survey is and must be time sensitive, means that the whole issue of multiple surveys is not solved by a compulsory single survey and its use could impact on those living in less desirable properties or areas where properties tend to sell more slowly. Buyers currently rely on reports that are days old, and the Society believes it is in the public interest for a single survey report to have a limited lifespan. Initial results from our online questionnaire of the profession suggest that it should be between one and three months.

“The Executive may have answers to some of the concerns we have raised, such as conflict of interest issues or the inability for would-be buyers to consult the surveyor providing the single survey. We will be studying the consultation paper carefully to check on this. We will also continue to work with ministers to try and ensure sound solutions which will be a benefit to homeowners in Scotland.”

The consultation can be found at http://www.communitiesscotland.gov.uk/stellent/groups/public/documents/webpages/cs_012537.hcsp . Responses are due by 15 May 2007.