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Lawyers set for fight to stop Home Reports

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Published Date: 26 September 2008
LAWYERS in Scotland are heading for a collision with the Scottish Government today when they are expected to vote against plans forcing sellers to provide detailed reports on their homes.
As of December, sellers in Scotland will have to pay for a Home Report, featuring a survey, property questionnaire and energy report, before their property goes on the market.

But members of the Scottish Law Agents' Society (SLAS) say it will "des
troy" the property market North of the Border.

They are accusing the government of a "cover-up" saying the true cost of reports will be between £600-£800 rather than the £300 figure quoted.

They also warn the reports have an estimated shelf life of around four weeks, not all lenders will accept them and sellers could commission a number of reports until they acquire one which does not highlight defects.

SLAS members, who are holding the historic vote at a special general meeting of the Law Society of Scotland (LSS) in Edinburgh, want the society to repeat a request that the Scottish Government postpone the reports for at least two years from 1 December.

Ken Swinton, a senior lecturer in Law and Management at the University of Abertay in Dundee and a spokesman for SLAS, said: "Solicitors believe Home Reports will destroy the already fragile Scottish property market. It is highly irresponsible of the Scottish Government to proceed with a measure which solicitors believe will bring the property market to a standstill."

But Sarah O'Neill, legal officer at the Scottish Consumer Council, said: "When it's harder than ever to get on to the first rung of the housing ladder, (first-time buyers] will pay nothing for detailed information about the value, condition and energy efficiency of the property."

Yesterday Annabel Goldie, Scottish Tory leader, urged postponing home reports in the current economic climate.

But Alex Salmond, the First Minister, said: "There are no shortage of sellers of houses at the present moment. There is a distinct shortage of buyers of houses …. because of the availability of mortgages."



The full article contains 347 words and appears in The Scotsman newspaper.
Page 1 of 1

 
1

Mallory,

Edinburgh 26/09/2008 08:06:30
This will really help the housing market to recover...
2

Rickie,

Fife 26/09/2008 10:13:28
I've thought it's as it should be for years, why would a seller not provide the info on the purchase?

Would you buy a TV from a shop that wouldn't tell you it's worth or whether it's going to need repaired before use?
3

ARP,

Scotland 26/09/2008 10:59:45
Maybe a slowdown is needed in Scotland where first time buyers still seem to believe that the property ladder always leads upwards.
4

davidmcn,

Glasgow 26/09/2008 12:51:09
"Would you buy a TV from a shop that wouldn't tell you its worth"

Yes - I don't know any shops which provide you with independent valuations of the goods they have on sale.
5

Fraz 0810,

Dunfermline 26/09/2008 14:31:32
I've already posted on this before, but Home Reports are a total red herring. There is a defacto defense for buyers built into the system in Scotland which is the "offer subject to survey". Are the politicians proposing to rewrite the principle of Caveat Emptor (buyer beware)? Besides, who is going to rely on a report written through a 3rd party - there have to be issues with warranty, assignation and liability, which I can't belive the RICS would be happy with. As was mentioned in the article, the shelf-life for these reports is also finite and very short. In the current climate, we can expect houses to be on the market for months rather than days and how long will a valuation report stay valid - probably no more than a few weeks? Then what, another report - £300!!! I doubt it, more like £600 - £800.

Home Reports will do nothing to stir first time buyers either because the valuation is going to be reflected in the advertised price anyway and the highest bidder will still get first dibs.

Also #2 Rickie - it's hard to equate the purchase of a common everyday good with the largest purchase the majority of us will ever make. The price of a house has little to do with the actual construction costs, and everything to do with location and land value, which cannot be said for any other good.
6

Invitrospud,

26/09/2008 14:49:16
#2 - why on earth should the seller pay for something they don't need? The buyer wants it so they should buy it.
Alex salmond is wrong to say there are no shortage of sellers - I am postponing because of the state of the market and now because of this report.
It is totally unnecessary. It was trialed a few years ago and the uptake was practically zero, because of the results of that trial they have no grounds to force it on us.
They say its to stop multiple surveys - but that's b***ocks as any buyer will tell you - everyone offers Subject To Survey. So, if it is solely to help first time buyers - it won't , because no-one will be selling!
7

BrianP,

Midlothian 15/11/2008 19:52:37
OK. Homes are not selling. Buyers can't get a mortgage. Surveyors are struggling to put a 'real' value on property as they rely on 'comparable' data (there is less comparables than ever because of my first two points). One good point - introducing a compulsory survey means that for the first time Home Sellers can seriously consider not using a solicitor or estate agent to market a property and save their estate agent fee. Also, home sellers thinking of selling in 2009 can simply list their property on Scottish For Sale by Owner websites prior to 1st December and avoid having to pay the Home Report fee.

 

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