Surveys A New Approach

The Agenda

The Agenda• ‘Which’ findings on surveys• The Government report on surveys • How products have developed• The CML lenders handbook• RPSA solution

Which? Report

The Which? Findings on surveys (May 2008)• 80% of consumers say they do (or would) obtain a survey on a

property they intend to buy• Only 18% actually do so• Consumers believe the lenders valuation is a survey• There is serious detriment as a result

• 1 in 4 end up having to pay over £2,500 in remedial work• 1 in 10 have to pay over £10,000

GovernmentReport

The Government report on Surveys• Until recently products were not fit for purpose• The CML lenders handbook requires that conveyancers should

advise buyers about surveys (4.4)• Buyers are not getting the message (don’t read the small print!)• As a result they are buying properties on an uninformed basis• The Government will not legislate on this issue• The Government is looking for private sector initiatives to

resolve the issue • The FCA potential involvement

The HCS

Home Condition Survey (HCS)• A new approach – a new product• Offered only by SAVA (part of NES) and BRE • All surveys lodged with SAVA and BRE for quality assurance

purposes • Public Liability and Professional Indemnity insurance is held

by SAVA and BRE in respect of every survey• Accredited surveyors subject to quality monitoring and

must maintain CPD records• Accredited Surveyors are CRB checked

RPSA

Residential Property Surveyors Association (RPSA)

• A representative body for SAVA and BRE accredited surveyors

• Dedicated to the development of quality surveying products with SAVA and BRE delivered by its members

• Operates a national panel for its members with complete coverage of England and Wales

• The panel is subject to demanding service standards

Buying a house

Buying a House

• Your clients biggest lifetime investment• 80% of your clients are unlikely to commission

any form of independent survey or condition report !

• Believe their lenders valuation is a survey• The CML handbook passes the buck to you!• Best advice for your client

Inspect and Report

HCS – Inspection & Report

• Detailed inspection of building, inside & outside including loft space

• The site and permanent outbuildings• Gas, electricity, water and drainage services• Survey gives you a plain English jargon free

report on the condition of the property

The Report

The Report

• Describes the type and construction of all key elements

• Describe the defects found• Gives each key element a 1, 2, 3 Condition

Rating• Includes minimum 20 pictures as standard

Condition Rating

standard

standard

What’s covered?

What’s Covered?

• Main elements of the building• Structural Movement• Damp, Rot, Woodworm• Roof, Chimneys, Gutters• Windows & Doors• Drains• Services – electrics, heating, water

Legal Matters

*Issues for Conveyancers*

• Structural Alterations• Extensions• Previous Repairs – Warranties• Building Regs• Planning Permission• Boundaries• Shared Drains• Flying Freeholds

Legal Matters

HCS

Home Condition Survey

• The more information you have• The more informed decision your client can

make• Less potential liability• Everybody is better protected

Helping your client to make the right decision about their new home!

RPSA Surveyors

The Surveyor will• Accept instructions with 24 hours of receipt and

establish contact with vendor/ agent • Provide daily updates if there is any delay in the

process• Lodge the Survey within 48 hours• Contact the client within 48 hours of lodging

the survey

RPSA Surveyors

Home Condition SurveysFromRPSA