Buying a house!
What you should know when instructing a surveyor
Whilst it is very important to buy a house you would want to live in you must remember that and it is also a huge investment. The law considers that buyers should beware of any problems with the property and hence it is your responsibility to take care when considering which properties may be suitable. I would suggest that if a property appears to be suitable then second viewing should be made to take a close look at the fabric of the property.
When you are viewing the property, take a notebook with you and have a good look round each room. Make a note of any cracks, damp marks, funny smells or any other aspect of the property you are unsure about.
Once you have made an offer to purchase the property, which has been accepted by the vendors, it is now time to instruct a surveyor to inspect the property.
There are three levels of survey that can be obtained:
1. A Valuation Report
If you intend to fund your purchase with a mortgage the building society will instruct a surveyor to inspect the property and provide an opinion on the value of the property. The building society will then use the valuation to check that the value of the property provides adequate security for the mortgage.
If a mortgage is not required it is possible to privately instruct a surveyor to provide a valuation report.
When the surveyor visits the property in order to do a valuation he normally gives a brief inspection of the exterior and interior of the property and this level of survey is not normally considered as an adequate report on the condition of the property.
2. A Homebuyers Survey
This is a more comprehensive survey than a valuation report but less comprehensive than a full structural survey. A surveyor will normally inspect the property in more detail than a valuation report but will only report on matters that are deemed urgent or significant.
Urgent matters are defined as problems that may have a detrimental effect on the property if not repaired in the near future, for example, a leaky roof or dry rot.
Significant matters are those that might have a significant effect on the value of the property but do not need to be dealt with as a matter of urgency. For example, I would consider that any abnormal construction methods ought to be commented on as they are likely to have a significant affect on the value of the property.
3. A Full Structural Survey
This is the most comprehensive survey available and accordingly is the most expensive. However, the cost is normally only slightly more than that of a Homebuyers Survey and a surveyor has a duty to report on all aspects of the property that are readily visible. He does not have, however, have a duty to lift floor coverings or move furniture and report on what is unseen.
I would always recommend that you get a full structural survey done when purchasing a property and this is particularly relevant when buying an older or more expensive property.
Once you have decided on the appropriate level of survey, please instruct the surveyor in writing and ask him to look at any areas that caused concern when you initially looked at the property. Please draw his attention to any cracks, damp marks, funny smells, any other feature of the property you would like inspected in more detail.
Once you have a copy of the report from the surveyor please read it very carefully and if you do not understand any aspect of the report do not hesitate to call on the surveyor and ask questions. If the valuation given in the survey is lower than the purchase price of the property, again please call the surveyor and ask why this is the case.
If the survey recommends any further investigations or work to be made prior to exchanging contracts, you must follow these recommendations and instruct a specialist firm to inspect the property and produce recommendations and estimates for the work needed. It would then be appropriate to return to the vendors with this information and attempt to negotiate a suitable reduction in the purchase price of the property.
If you are unfortunate enough, despite your best efforts, to find structural problems in your property after the purchase, then your first port of call should be to contact your surveyors and to follow the complaints procedure that is in place. Hopefully, minor matter can be settled in this way.
If you are still unhappy and feel that your survey did not reveal all of the problems that you know to be present in your property, please check your home contents insurance policy to see if you have legal expenses insurance attached to it. If you do, I suggest that you contact your legal expenses insurer and make a claim under the policy.
If you do not have legal expenses insurance and you wish to make a claim under the laws of professional negligence, we would be happy to offer you more advice on the evidence needed to demonstrate negligence, the potential time scale of such a claim and the potential legal costs.
Professional negligence claims are rarely straightforward and are governed by a Professional Negligence Pre-Action Protocol. This gives a timetable that both parties should follow before a legal claim is issued. The emphasis is placed on either negotiating a settlement between the parties or narrowing the issues in dispute before issuing proceedings.
Failure to follow the Pre-action Protocol is likely to incur the displeasure of the Court and may lead to an adverse costs order being awarded against the party that does not comply.
The time frame for a professional negligence claim to come to Court can be between 2 and 3 years and therefore it follows that prevention is certainly better than cure when obtaining a survey on a prospective property.
Should you wish to discuss the information contained in this article further, or have questions relating to this area of law, please contact Helen Read.