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The Home Condition Report- Introduction

What is known so far

  • "Seller's Information Pack" containing upfront
    information to be provided before a residential
    property is marketed.
  • The pack will contain a Home Condition Report.
  • Implementation January 2003

The Seller's Information Pack

  • Will be mandatory
  • Seller or agent will be responsible for provision

Home Condition Report

  • Open to any accredited person.
  • Must therefore be ACCREDITED
  • Must have PII cover

Initial Brief from DETR

  • A general report on the property to give the buyer enough information about the property to enable negotiations to take place.
  • Reduce caveats and small print.
  • System of swift and fair redress.
  • Liked the idea of bolt-on warranties.
  • SAP Rating.

Condition Report Group Objectives

  • Reporting format should meet spirit of Government proposals.
  • Economical
  • Workable

Further Objectives

  • Concise and clear.
  • Fair, accurate and objective.
  • Consistency is the keystone to success.

Home Condition Report

  • A prescribed format.
  • Not a building survey.
  • Elemental condition categories.
  • Narrative.
  • Valuation - definitely no.
  • Insurance cost assessment - probably yes.

The Report itself

  • Experimental Draft.
  • Guidance Notes also draft only.
  • Subject to continual review.
  • Caveat Emptor rule remains.
  • Third Party Contract Right Act 1999 completes the reliance link. Allow vendors or purchaser to sue not necessarily the person who paid the account.
  • No 'Double Jeopardy'.

What type of property will it apply to?

  • Any residential property sold for owner/occupation.
  • Exclusions will include:
  • Brand new houses with NHBC or equivalent.
  • Houses sold 'off-plan'.
  • Mixed commercial/residential properties.
  • Listed buildings - special conditions apply.

Possible Variations

  • Exclude very cheap houses?
  • Possible bolt-on extras for listed very old or very large properties.
  • Important point.
  • No exclusion for private sellers.
  • No exclusion for auction properties.

The draft report itself

  • It is probably not the final version - feedback is being sought from everybody likely to be involved.
  • It is copyright.
  • Dawson have own format.

Report Format

  • Tick box system of categorised elements.
  • Satisfactory Repair.
  • Minor Maintenance Required.
  • Significant Repair Required.
  • Urgent Repair Required.

The Draft Report

  • For condition ratings 1 or 2 minimal or no narrative.
  • For ratings 3 or 4 narrative to be provided as to state of repair and what needs to be done to rectify the defect.
  • Dawson have done this for the last 15 years.

Findings of Bristol Trial

  • 12% show major repair problems.
  • Buyers say they are seeing real benefits.
  • Greater certainty.
  • Greater transparency.
  • 90% satisfaction.

We say...

  • Level of inspection is about right.
  • Level of reporting - a bit simplistic?
  • Difficulty over services - what's new?
  • Where's the timber and damp section gone?
  • More standard clauses please.
  • Inspection time similar to HSV
  • No structural comments?
  • Inappropriate SAP advice?

DETR Requirements of Accreditation/Certification

  • 'Open Access'
  • High level of dependence on Accreditation.
  • Accreditation must deliver...
  • Consumer confidence.
  • Achievable high standards of competence.
  • Consistency.
  • Rigorous monitoring and auditing.

ANY QUESTIONS?