Home Survey Standards Flashcards
When was the new Home Survey standards produced?
Home Survey standard 1st edition November 2019 - it is a professional statement and therefore mandatory. It was effective 15 months from publication
Why were the home survey standards produced?
To provide consistency and high standards. It provides minimum standards and expectations for residential surveys. It harmonises previous publications.
What is the scope of a home survey?
A report on condition, environmental matters, legal issues, risk to occupants. Can include a valuation.
What does the home survey standards cover?
- the mandatory requirements to which all condition-based residential survey services
offered by RICS members and RICS regulated firms must conform and - best practice that outlines how the mandatory requirements are met. This includes:
– the process of confirming the scope and nature of the services to be provided
– the typical levels of service to which this document applies
– the nature of the pre-inspection preparation and research required
– the inspection process associated with each level of service
– report writing methodology
– post-report client liaison and
– service closure activities.
Scotland has different laws on home buying so not all is relevant
What does it say about conflict of interest and referral fees?
The RICS member must declare any potential conflicts and how these are managed
in accordance with the current editions of the International Ethics Standards, RICS
Valuation – Global Standards, RICS Valuation – Global Standards: UK national
supplement, RICS Rules of Conduct and Conflicts of interest, RICS professional
statement.
RICS members and regulated firms must be transparent and open with their clients or
potential clients by acknowledging that they have offered or received a referral fee or
other inducement prior and relating to taking the instruction.
RICS members and regulated firms must provide clients or prospective clients with a
written statement (which should be included in the terms of engagement) stating one of
the following, depending on which applies:
* that the RICS member or regulated firm does not pay a referral fee or equivalent to
any party who may have recommended them or
* that a payment has been or may be made, either individually or part of a third-party
commercial relationship.
What does it say about experience?
RICS members must be qualified, experienced and able to deliver services by:
* having knowledge of the tasks to be undertaken and the risks involved
* possessing the experience and ability to carry out their duties in relation to the
appropriate level of service and
* identifying their own limitations and taking appropriate action where their knowledge
and experience is found to be inadequate.
What about knowledge?
RICS members must be familiar with the nature and complexity of the subject property
type, the region in which it is situated and relevance to the subject instruction, including:
* housing styles
* advice on asbestos
* main principles of modern construction
* environmental issues
* listed buildings
* type of tenure
What about client liason?
RICS members and RICS regulated firms must take all reasonable steps to ensure that
clients:
* understand the differences between the levels of service, including the extent and
limitations of each option
* are advised of the range of options the RICS member can offer, together with the key
features and benefits of each
* are aware of the fee that will be charged for the service and
* agree the terms of engagement
* agree report format and method of delivery and
* explain the intended future use of the property (for example buy to let).
Clients may not be familiar with the range of choice available and will require advice on
which level best suits their needs. The RICS member or regulated firm should confirm
the client has access to appropriate information before any contract is formed.
Where instructions have been received from a third party (for example, from a lender
or a panel manager), the RICS member or regulated firm should satisfy themselves the
instruction is best suited to both the property and the needs of the client.
Where the RICS member finds the instruction is not suitable, the client should be given
the reasons why and advised on the appropriate level of service.
What about levels of service?
RICS members must ensure their service is clearly ‘benchmarked’ against one of the
defined levels included in appendix A. These levels are not prescriptive or detailed.
Instead they provide enough detail to allow the minimum nature of the service to be
identified while maintaining sufficient flexibility for RICS members to respond to changes in the market and client requirements. The benchmarked level against which the RICS member’s service meets all requirements set out in this document must be clearly stated.
The ‘equivalent level’ definition should be included on the RICS member’s website, in
their standard literature and in their terms of engagement. The RICS member should
also explain the equivalent level in any communications (verbal or otherwise) with clients or potential clients before those terms are agreed.
What is a level 1?
This service is designed for clients (buyers, sellers and owners) seeking a professional
and objective report on the condition of the property at an economic price. As a result, it
is less comprehensive than survey level two and survey level three.
This level of service includes a visual inspection that is less extensive than for the other
survey levels. No tests of the building fabric or services are undertaken. The report
objectively describes the condition of the building, its services and the grounds. It
highlights relevant legal issues and any obvious risks to the building, people or grounds.
The report is succinct and provides an assessment of the relative importance of
the defects and problems. Where the surveyor is unable to reach a conclusion with
reasonable confidence, a recommendation for further investigation should be made.
A survey level one report does not include advice on repairs or ongoing maintenance
and this, combined with the less extensive inspection, usually means it is better suited
to conventionally built, modern dwellings in satisfactory condition. It will not suit older or complex properties, or those in a neglected condition.
What is a level 2?
This level of service is for clients who are seeking a professional opinion at an economic
price. It is, therefore, less comprehensive than a level three service. The focus is on
assessing the general condition of the main elements of a property.
This intermediate level of service includes a more extensive visual inspection of the
building, its services and grounds, but still without tests. Concealed areas normally
opened or used by the occupiers are inspected if it is safe to do so (typical examples
include roof spaces, basements and cellars). The report objectively describes the
condition of the different elements and provides an assessment of the relative
importance of the defects/problems. At this level, although it is concise, the report does
include advice about repairs and any ongoing maintenance issues. Where the surveyor
is unable to reach a conclusion with reasonable confidence, a recommendation for
further investigations should be made.
This level of service suits a broader range of conventionally built properties, although the age and type will depend on the knowledge and experience of the RICS member. This level of service is unlikely to suit complex properties (where altered or extended) or older properties or neglected properties.
What is a level 3?
This level of service is for clients who are seeking a professional opinion based on a
detailed assessment of the property. The service consists of a detailed visual inspection of the building, its services and the grounds and is more extensive than a survey level two. Concealed areas normally opened or used by the occupiers are inspected if it is safe to do so (typical examples include roof spaces, basements and cellars). Although the services are not tested, they are observed in normal operation – in other words, they are switched on or off and/or operated where the occupier has given permission and it is safe to do so. The report objectively describes the form of construction and materials used for different parts of the property. It describes the condition and provides an assessment of the relative importance of the defects/problems. Additionally, it should:
* describe the identifiable risk of potential or hidden defects in areas not inspected
* propose the most probable cause(s) of the defects based on the inspection
* outline the likely scope of any appropriate remedial work and explain the likely
consequences of non-repair
* make general recommendations in respect of the priority and likely timescale for
necessary work and
* give an indication of likely costs (this aspect would not normally form part of the level
three service, but some RICS members may choose to include it). Where costings
are included, this must be reflected in the terms and conditions.
Where an RICS member feels unable to reach the necessary conclusions with
reasonable confidence, they should refer the matter for further investigations. However,
at survey level three such referrals should be the exception rather than the rule. A survey level three report should aim to provide the client with all the information they need to make a decision. This level of service will suit any domestic residential property in any condition depending on the competence and experience of the RICS member.
What is an example of inspection for a level 1 vs level 2 vs level 3 for loft?
The loft is not inspected other than from a ladder. Level 2 enters loft. Level 3 enters loft and will lift insulation in corners.
What is an example of inspection for a level 1 vs level 2 vs level 3 for floors?
level 1 - no inspection via access hatches but does heel drop test
level 2 - unfixed floors are lifted with head and shoulder inspection where possible
level 3 - unfixed floors are lifted with head and shoulder inspection where possible, slope or deflection is measured. Will enter below the floor if safe to do so.
What is an example of inspection for a level 1 vs level 2 vs level 3 for drainage?
level 1 - does not lift inspection chambers
level 2 - lifts accessible chamber covers with visual inspection
level 3 - lifts accessible chamber covers with visual inspection and observe in normal operation (flushing toilets etc)
What is an example of inspection for a level 1 vs level 2 vs level 3 for services?
level 1 - visual inspection of sample parts
level 2 - visual inspection of all parts that can be seen
level 3 - check extractors and ask owner to show operation of heating etc
