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HOMEBUYER SURVEY AND VALUATION
STANDARD TERMS OF ENGAGEMENT
22 November 2003
PART
1: GENERAL
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1.
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The Service. The standard HOMEBUYER Survey & Valuation
Service ("the Service") which is described in Part 2 of these
Terms ("the Description") applies unless an addition to the
Service is agreed in writing before the Inspection. (An example
of such an addition is reporting upon parts which are not
normally inspected, such as the opening of all windows.)
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2.
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The
Surveyor who provides the Service will be a Chartered
Surveyor, or a Fellow or Associate of the Incorporated Society
of Valuers and Auctioneers, who is competent to survey, value
and report upon the Property which is the subject of these
Terms.
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3.
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Before
the Inspection. The Client will inform the Surveyor of
the agreed price for the Property and of any particular concerns
(such as plans for extension) which he or she may have about
the Property.
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4.
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Terms
of payment. The Client agrees to pay the fee and any other
charges agreed in writing.
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5.
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Cancellation.
The Client will be entitled to cancel this contract by notifying
the Surveyor's office at any time before the day of the Inspection.
The Surveyor will be entitled not to proceed with the provision
of the Service (and will so report promptly to the Client)
if, after arriving at the Property, he or she concludes that
it is of a type of construction of which he or she has insufficient
specialist knowledge to be able to provide the Service satisfactorily;
or that it would be in the typical Client's best interests
to be provided with a Building Survey, plus valuation, rather
than the HOMEBUYER Service. In case of cancellation, the Surveyor
will refund any money paid by the Client for the Service,
except for expenses reasonably incurred. In the case of cancellation
by the Surveyor, the reason will be explained to the Client.
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6.
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Liability.
The Report provided is solely for the use of the Client and
the Client's professional advisers, and no liability to anyone
else is accepted. Should the Client not act upon specific,
reasonable advice contained in the Report, no responsibility
is accepted for the consequences.
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PART
2: DESCRIPTION OF THE HOMEBUYER SERVICE
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A. |
The
Service
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A. |
The
HOMEBUYER Service comprises:
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an Inspection of the Property (Section B below)
- a concise Report based on the Inspection (Section C)
- the Valuation, which is part of the Report (Section D)
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A2. |
The Surveyor's main objective in the HOMEBUYER Service is
to give Clients considering buying a particular Property the
professional advice which will assist them:
- to make a reasoned and informed judgement on whether or not to proceed with the purchase
- to assess whether or not the Property is a reasonable purchase at the agreed price
- to be clear what decisions and actions should be taken before contracts are exchanged.
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A3 |
The
HOMEBUYER Service therefore covers the general condition of
the Property and particular features which affect its present
value and may affect its future resale. The Report focuses
on what the Surveyor judges to be urgent or significant matters.
Significant matters are those which, typically, in negotiations
over price would be reflected in the amount Finally agreed
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B. |
The
Inspection
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B1. |
The
Inspection is a general surface examination of those parts
of the Property which are accessible: in other words, visible
and readily available for examination from ground and floor
levels, without risk of causing damage to the Property or
injury to the Surveyor. Due care is therefore exercised throughout
the Inspection regarding safety, practicality and the constraints
of being a visitor to the Property (which may be occupied).
So furniture, floor coverings and other contents are not moved
or lifted; and no part is forced or laid open to make it accessible.
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B2. |
The
services are inspected (except, in the case of flats, for
drainage, lifts and security systems), but the Surveyor does
not test or assess the efficiency of electrical, gas, plumbing,
heating or drainage installations, or compliance with current
regulations, or the internal condition of any chimney, boiler
or other flue. Also the Surveyor does not research the presence
(or possible consequences) of contamination by any harmful
substance. However, if a problem is suspected in any of these
areas, advice is given on what action should be taken.
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B3. |
Where
necessary, parts of the Inspection are made from adjoining
public property. Such equipment as a damp-meter, binoculars
and torch may be used. A ladder is used for hatches and also
for flat roofs not more than three metres above ground level.
Leisure facilities and non-permanent outbuildings (such as
pools and timber sheds) are noted but not examined. In the
case of flats, exterior surfaces of the building containing
the Property, as well as its access areas, are examined in
order to assess their general condition; roof spaces are inspected
if there is a hatch within the flat.
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C. |
The
Report
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C1. |
The
Report provides the Surveyor's opinion of those matters which
are urgent or significant and need action or evaluation by
the Client before contracts are exchanged. It includes some
or all of the following:
- urgent repairs (e.g. gas leak; defective chimney stacks)
- for which the Client should obtain quotations where appropriate
- significant matters requiring further investigation where
essential (e.g. suspected subsidence) - for which the Client
should obtain (and may have to pay for) reports and quotations
from suitable contractors
- significant but not urgent repairs and renewals (e.g new
covering for flat roof before long)
- other significant considerations (e.g. some potential source
of inconvenience) which the Surveyor wishes to draw to the
attention of the Client
- legal matters (e.g. a possible right of way) which the Client
should instruct the Legal Advisers to include in their inquiries.
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C2. |
Matters
assessed as not urgent or not significant are outside the
scope of the HOMEBUYER Service and are generally not reported;
however, other matters (such as safety) are reported where
the Surveyor judges this to be helpful and constructive. If
a part or area normally examined is found to be not accessible
during the Inspection, this is reported; if a problem is suspected,
advice is given on what action should be taken.
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C3. |
The
Report is in a standard format arranged in the following sequence:
Introduction & Overall Opinion; The Property & Location; The
Building; The Services & Site; Legal & Other Matters; Summary;
Valuation. In the case of leaseholds, the Report is accompanied
by a standard appendix called Leasehold Properties.
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D. |
The
Valuation and Reinstatement Cost
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D1. |
The
last section of the Report contains the Surveyor's opinion
both of the Open Market Value of the Property and of the Reinstatement
Cost, as defined below.
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D2. |
"Open
Market Value" is the best Price at which the sale of an interest
in property would have been completed unconditionally for
cash consideration on the date of valuation. In arriving at
the opinion of the Open Market Value, the Surveyor also makes
various standard assumptions covering, for example: vacant
possession; tenure and other legal considerations; contamination
and hazardous materials; the condition of uninspected parts;
the right to use mains services; and the exclusion of curtains,
carpets, etc., from the valuation. (If required, details are
available from the Surveyor.) Any additional assumption, or
any found not to apply, is reported.
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D3. |
"Reinstatement
Cost" is an estimate for insurance purposes of the current
cost of rebuilding the Property in its present form, unless
otherwise stated. This includes the cost of rebuilding the
garage and permanent out-buildings, site clearance and professional
fees, but excludes VAT (except on fees).
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