Single survey is not the answer, say solicitors
16 Mar 07
Response to online survey shows 80% think it won't improve the buying process or housing stock
Most solicitors do not think the single survey will improve the housebuying and selling process in Scotland.
Eighty per cent of those who responded to the Law Society of Scotland’s online questionnaire on the single survey answered "no" to the question whether they thought the seller's survey would improve the process. And 82% replied that they did not think it would lead to an improvement of the housing stock.
The Society said that while it welcomed the Scottish Executive's plans to improve Scotland’s housing stock and the housebuying process, it did not think the introduction of a compulsory single survey as part of the purchaser’s information pack (PIP) was useful.
The Society believes that making sellers commission such surveys before they are allowed to put their house up for sale reduces consumer choice and could create new problems for housebuyers, particularly for those on low incomes or for those trying to sell their home in a slow market. The PIP is expected to contain a single survey, an energy report and a property sale questionnaire.
Majority views
Of the 443 solicitors who completed the online questionnaire last month, 58% thought that offers "subject to survey" had removed the problem of multiple surveys (27% said it had not and 15% didn’t know).
The perceived problem of low "offers over" prices was rejected by 48%, and a further 26% said it was a widespread practice, but would not be affected by the proposed single survey. Only 16% believed the survey would improve things and 10% didn’t know.
Almost 90% of those solicitors who responded thought there should be a limited lifespan for the single survey - 44% would not advise acceptance of a survey over a month old and a further 44% said it should not be older than three months.
More than 60% of respondents said their clients bought property using only a mortgage valuation, which included 30% who estimated that 81-100% of their clients did this.
The highest level of agreement came from the 89% who believed it would be a significant problem if the prospective buyer was unable to discuss the report with the surveyor who prepared it.
New working methods
Janette Wilson, convener of the Society’s Conveyancing Committee, said: “Solicitors recognise the need for improvement and have instigated new working methods to accommodate a changing housing market.
"Many solicitors back the property sale questionnaire (PSQ), which will also be part of the PIP, and have already started to use it. Submitting offers ‘subject to survey’ came about because solicitors adapted buying procedures in those areas with a heated property market. It may not solve every problem, but it does prevent the issue of multiple surveys - particularly for first time buyers.”
Another change is the adoption of regional standard missives by solicitors throughout Scotland, which has helped to speed up and ensure clarity in concluding missives. Of the respondents, 63% said they used standard missives for residential transactions and a further 17% said they used them sometimes. Only 20% did not use them at all.
Waiting for answers
Ms Wilson added: “We are keen to see improvements to Scotland’s housebuying system but are concerned that the single survey has not been fully tested.
“The Executive may have answers to some of the questions that we have raised, such as conflict of interest or the inability for would-be buyers to consult the surveyor providing the survey report. We will be studying the consultation carefully before submitting our opinion by the closing date on 15 May.
“Buying a home is a major investment for thousands of Scots and we will continue to work with ministers to help ensure that any new system will be a benefit to homeowners right across the country and not simply those in Edinburgh and Glasgow hotspots.”