Buying your home – Surveys

Surveys

One of the few remaining Latin legal phrases is ‘Caveat Emptor’, which means ‘(Let the) Buyer beware’.

In some countries the seller is obliged to provide as much information as possible when selling a property. Not so here (although this is changing). It is up to you the buyer to find out as much as you can about the property including its state and condition.

So unless you are buying a new property with a guarantee, or are qualified to inspect a property, it is essential you commission a survey.

You will have no recourse to the seller if, after completion, you find some defect in the property.

Choosing a surveyor

The surveyor you choose to survey the house or flat you are proposing to buy should be a member of the Royal Institute of Chartered Surveyors. (You should see the RICS logo on notepaper and advertisements).

(There are other professional organisations, but these are less well known).

As with all professionals, a personal recommendation is the best. If you are instructing a local conveyancer, he or she will probably know a good surveyor.

As always, you usually ‘get what you pay for’ but remember a ‘Self employed’ surveyor may not need to charge vat. whereas a large company of surveyors will be obliged to.

Like all contracts with professionals, you should have a written quote of the cost of the survey which you will be asked to sign. Your surveyor will require the fees to be paid before the survey is carried out.

Types of survey and valuation

 Although different organisations give their products different names; there are broadly three types of ‘survey’:-

The RICS describes their ‘levels’ of survey as follows: –

Level 1 – Condition Report

  • Best for: New-builds or modern homes in good condition.
  • Scope: Provides a basic overview of the property’s condition, identifies urgent defects, and highlights potential legal or safety risks.
  • Limitations: Does not provide detailed advice on managing defects or extensive analysis.
  • Purpose: Offers reassurance for straightforward properties and is typically the lowest-cost survey.

Level 2 – HomeBuyer Report

  • Best for: Most conventional homes, especially those built after 1900 and in reasonable condition.
  • Scope: Includes a more detailed inspection of visible parts of the property, such as roofs, walls, windows, doors, and services. Uses a traffic-light system (green, amber, red) to indicate severity of issues. Can be conducted with or without a valuation.
  • Purpose: Provides a balanced level of detail, identifies defects, and offers advice on repairs and maintenance. It is the most popular choice among buyers.

Level 3 – Building Survey

  • Best for: Older, larger, or non-standard properties, including listed buildings or homes with extensive alterations.
  • Scope: Offers a comprehensive inspection of the property’s structure, materials, and condition. Includes detailed analysis, estimated repair costs, and advice on long-term maintenance.
  • Purpose: Essential for properties showing signs of wear, movement, or long-term neglect, providing the most thorough assessment 
  •  This is required by your mortgage lender to make sure the property you are buying is worth the price agreed. It is therefore very limited, although it should identify major issues that will affect the property’s value (and so the mortgage lender’s ability to sell should they need to ‘repossess’ it).

(Note; that although you will have to pay your lender for the valuation, it is for the lender’s benefit, and so will not usually cover you if the surveyor makes a mistake).

Therefore unless the property you are proposing to buy is relatively new and still has e.g. the N.H.B.C. guarantee, then one of the following is strongly recommended

The RICS offer 3 levels of survey: –

Level 1

Level 1 service includes:
• a physical inspection of the property (see The inspection below) and
• a report based on the inspection.

Level 2

 

 

 

 This may be described as a ‘middle of the road’ survey and is offered by chartered surveyors.

It is ideal for modern properties say between 10 and 20 years old.

The report has various headings such as ‘Roof’, ‘Foundation’, ‘Movement’ etc and your surveyor will report on each section.

He or she will at the end of each section recommend further reports if necessary, and list repairs needed. Some repairs may be noted as ‘Urgent’ whilst other repairs can be dealt with ‘in due course’.

If possible arrange to obtain quotes for the repairs recommended by your surveyor and try and negotiate a reduction in the price or an ‘allowance’ towards the cost of the repairs.

 

Most ‘Home Buyers Reports’ will include a valuation but note this may not be acceptable to your mortgage lender if the surveyor you have chosen, is not on your lender’s ‘panel’.

 

3.         Building Survey or Full structural survey

 

This is the ‘full monty’ of surveys and takes the longest time to prepare and so costs the most.

It is essential for large or old properties and particularly for listed buildings.

It is best also to opt for this survey too, if you are planning major works, as your surveyor can advise you whether your plans are achievable or the best way to implement them.

 

4.         Other types of survey

 

‘Serious Defects survey’

 

Some surveyors offer a survey that sits ‘in between’ the ‘Home Buyers Report’ and ‘Building or full Survey’. Sometimes called a ‘Serious Defects survey’ or similar, it will draw your attention to any serious defects found (hence the name). It will list recommended repairs or further investigation. You can then obtain estimates for the work and try and negotiate a reduction or allowance as before.

 

This type of survey doesn’t try to identify minor faults that would not cost much to put right. The survey therefore takes less time than a ‘Building or full Survey’ and so costs less.

 

 

 

Structural Engineer’s report

 

This is a specialist survey that your surveyor may recommend, if he or she discovers possible movement or subsidence in the property you are hoping to buy.

 

I feel the seller should pay for this report if recommended by your surveyor. If the seller is not keen to pay for this, then he or she may be equally unlikely to want to reduce the price of the house, if expensive repairs are found to be necessary.

 

The structural engineer may identify e.g. subsidence and recommend immediate action. On the other hand, he or she may recommend e.g. any ‘movement’ to be monitored to see if it is ‘historic’ or ongoing. You will then have to wait for the further inspection and report after the period or monitoring has expired.

 

If you wish to continue with the purchase you may be able to agree with the seller to make a ‘retention’. This is a sum held back (and put on deposit) from the purchase price by your conveyancer, which is estimated to cover the cost of repairs, if found to be necessary.

 

If repairs are necessary, then the money is taken from the ‘retention’ to pay for it. If no repairs are necessary, the money retained can be paid over to the seller.

 

Remember though, that your mortgage lender will have to agree any such arrangement, but may simply refuse to lend on a property with such serious problems.