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Communities Committee, 19 Apr 2005

19 Apr 2005 · S2 · Communities Committee

Item of business

Housing (Scotland) Bill: Stage 1

Ross MacKay: Watch on SPTV

We will await developments. The point to bear in mind, as mentioned in our submission, is that the single survey is only part of a larger pack—the proposed purchasers information pack—the details of which will be quite important. However, to focus on the availability of a single survey, a seller or their agent will have to provide a direct review. That will become part of the practice.The previous panel expressed concern about the inability of the purchaser to speak to the surveyor directly about a property. As a practising conveyancer instructing scheme 2 home buyer reports, I have some concerns in that regard because such reports can be detailed and lengthy. To see those reports cold, in black and white, can scare off potential buyers for no good reason. It is important in current practice that the client has the report interpreted for them, either by the solicitor or directly by the surveyor, to explain, for example, that a reference to damp in the hallway is not that serious and the problem will cost only £200 to fix. If the reference is just that there is damp in the hallway that needs to be investigated and repaired, that could be enough to scare off the nervous buyer. So, that may have a prejudicial impact from the seller's perspective.From the purchaser's perspective, the availability of further information should be beneficial. Purchasers will get a more detailed report than many get at the moment. Current practice is for solicitors to give their clients the option of two types of report—a valuation or a survey. Regrettably, and despite advice to the contrary, many buyers go for the cheaper option, which is the valuation. That is their choice. When people are faced with the choice between a cost of, for example, £250 and £550, and money is tight, they take the cheaper option. In that regard, more detail will be beneficial. Whether the cost of providing that detail will be met by the buyer or the seller is a point that needs to be thrashed out; that is a question for the future.The conveyancing committee still has concerns about the independence aspect. The Law Society of Scotland is concerned that, because the report is instructed directly by the seller, the buyer has no direct input in speaking to the surveyor with regard to its terms. The report is presented cold to the buyer. Solicitors, being cautious in nature, will advise their clients and, notwithstanding the existence of a single survey, the clients may still wish to have an independent valuation as well as the single survey, just to give them peace of mind—a second report from an independent surveyor who they have instructed themselves. Indeed, they may also wish to instruct a full scheme 2 report because, if the practice develops that the seller has to pay for the single survey, the buyer will get that report free from the seller. Therefore, why should not the buyer pay that extra £500 or £600 and get their own independent report as well? Practice may develop along those lines.

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Communities Committee, 19 Apr 2005

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