Inspection Flashcards
What is the purpose of a RICS Home survey?
The surveyor who provides the RICS Home Survey service aims to give the client professional advice to:
- make an informed decision on whether to go ahead with buying the property
- consider what further advice they should take before committing to purchasing the property.
- The nature and content of the report will vary between the different levels of service.
What framework is available and should be followed by RICS members/firms for home surveys?
The Home survey standard, 1st edition.
This professional standard sets out a series of concise mandatory requirements.
What is the content of a level one home survey?
For each element of the building, the RICS member should:
- Identify and describe each part or element of the building so it can be identified by the client and describe its condition. The description should be clear and concise expression of the RICS member’s professional assessment of each part or element.
This assessment should help the client gain an objective view of the condition of the property, make a decision and, once in ownership (if the client is a buyer), establish appropriate repair/improvement priorities. A condition rating system (number and RAG) is one way of achieving this, although RICS members may use their own prioritisation methodology. Whatever the choice, any system must be clearly defined in the information given to the client. The RICS Home Survey – Level 1 does not include advice on repairs or ongoing maintenance and it does not include a valuation.
What is the content of a level three home survey?
A level three service should reflect the thoroughness and detail of the investigation. It should address the following matters:
- the form of construction and materials used for each part of the building should be described in detail, outlining any performance characteristics. This is especially important for older and historic buildings where the movement of moisture through building materials can be critical to how the building performs
- obvious defects should be described and the identifiable risk of those that may be hidden should be stated
- remedial options should be outlined along with, if considered to be serious, the likely consequences if the repairs are not done
- a timescale for the necessary work should be proposed, including (where appropriate and necessary) recommendations for further investigation
- future maintenance of the property should be discussed, identifying those elements that may result in more frequent and/or more costly maintenance and repairs than would normally be expected
- the nature of risks of the parts that have not been inspected should be identified and
- prioritisation of issues should be outlined.
What is the content of a level two home survey?
A survey level two service should follow a similar structure and format to level one. Although it will provide more information, it should still be short and to the point, avoiding irrelevant or unhelpful details and jargon. Material defects should be described and the identifiable risk of those that may be hidden should be stated. A level two report will have the following additional characteristics:
- it should include comments where the design or materials used in the construction of a building element may result in more frequent and/or more costly maintenance and repairs than would normally be expected
- the likely remedial work should be broadly outlined and what needs to be done by whom and by when should be identified
- concise explanations of the implications of not addressing the identified problems should be given and
- cross-references to the RICS member’s overall assessment should be included.
Survey level two reports should also make it clear that the client should obtain any further advice and quotations recommended by the RICS member before they enter into a legal commitment.
Do home surveys comment on energy matters / EPC’s?
At all levels of service RICS members and regulated firms must be able to identify and advise on defects and deficiencies caused by inappropriate energy efficiency measures implemented at the subject property.
In addition, the different levels should include the following particular features:
- Level 1 – where the EPC has not been made available by others, the RICS member should obtain the most recent certificate from the appropriate central registry where practicable. The relevant energy and environmental rating should be reviewed and stated.
- Level 2 – in addition to that described for level 1, checks should be made for any obvious discrepancies between the EPC and the subject property and the implications explained to the client.
- Level 3 – in addition to that described for levels 1 and 2, at this level the RICS member should give advice on the appropriateness of any energy improvements recommended by the EPC and other comments on energy efficiency.
Members/firms may wish to offer more additional energy services and these must be reflected in the terms and conditions.
Where additional energy services are offered for older and/or complex properties, historic buildings and those in a neglected condition, RICS members must have the level of competence and technical knowledge to deliver them.
What is a level one survey?
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.
Less extensive visual inspection than for the other survey levels.
No tests of the building fabric or services are undertaken.
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.
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.
Why choose a level one survey?
Choose this report if you’re buying or selling a conventional house, flat or bungalow built from common building materials and in reasonable condition. This service includes:
- a visual inspection that is less comprehensive than the level 2 or 3.
- clear ‘traffic light’ ratings of the condition of different parts of the building, services, and the grounds, showing problems that may require varying degrees
of attention - a summary of risks to the building, people and grounds and.
- an assessment of the relative importance of the defects and problems.
No tests of the building fabric or services are undertaken.
Does not include advice on repairs or ongoing maintenance and it does not include a valuation.
What is a level two survey?
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.
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 buildings, for example those that have been extensively extended and altered
- unique or older historic properties – although survey level two services may be appropriate for some older buildings, the decision will depend on the RICS member’s proven competence and knowledge and the nature of the building itself. For example, a survey level two report on homes with traditional timber frames or those built much before 1850 is likely to be inconclusive and be of little use to the client or
- properties in neglected condition.
In such cases, a survey level two service will often result in numerous referrals for further investigations, an outcome that many clients find disappointing. Where the client is planning to carry out extensive repair and refurbishment work in the future, the RICS member should give advice on suitable additional services.
An option including a valuation is available this will include;
- the surveyor’s professional opinion on the ‘market value’ of the property
- an insurance reinstatement figure for the property
- a list of problems that the surveyor considers may affect the value of the property.
What is a RICS Home Survey Level three survey?
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.
Why choose a level 2 survey?
Choose this report if you need more extensive information whilst buying or selling a conventional house, flat or bungalow, built from common building materials and in reasonable condition.
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.
Why choose a Level 3 survey?
Choose this report if dealing with a large, older or run-down property, a building that is unusual or altered, or if you’re planning major works. It costs more than the other RICS reports because it gives detailed information about the structure and fabric of the property. This service includes:
- 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; and
- make general recommendations in respect of the priority and likely timescale for necessary work.
The surveyor may also be able to provide an estimate of costs for identified repairs if agreed with you in advance.
What are the condition ratings in the rics home survey reports?
- Condition rating 3 – Defects that are serious and/or need to be repaired, replaced or investigated urgently. Failure to do so could risk serious safety issues or severe long-term damage to your property. Written quotations for repairs should be obtained prior to legal commitment to purchase.
- Condition rating 2 – Defects that need repairing or replacing but are not considered to be either serious or urgent. The property must be maintained in
the normal way. - Condition rating 1 – No repair is currently needed. The property must be maintained in the normal way.
- NI – Elements not inspected.
What are some criticisms of rics home survey reports?
Generally only a visual inspection. This means that we do not take up carpets, floor coverings or floorboards, move furniture or remove the contents of cupboards. Also, we do not remove secured panels or undo electrical fittings.
Roofs, chimneys and other surfaces on the outside of the building are inspected from ground level and, if necessary, from neighbouring public property and with the help of binoculars.
Generally do not report on the cost of any work to put right defects or make recommendations on how these repairs should be carried out.
No great depth as only broken broadly down by element.
The report contains multiple caveats and exclusions in order to cover the surveyor should anything unseen be missed.
What is a Reinstatement cost assessment?
If damage is done to the building the cost of knocking it down and rebuilding it (Net rebuild costs). The cost includes; demolition and debris removal, rebuild costs, professional and statutory fees, additional costs to comply with current regs, any tenant alterations, external works e.g. utilities supply.
Generally, all assessments are made on the basis of total loss or of such substantial damage that the entire building will require demolition and rebuilding.
What does a reinstatement cost assessment report include?
Description of the property
- Specific exclusions
- Reinstatement costs
- Reinstatement period
- Elemental break down includes; element, description, rate, IPMS 2, Cost & Notes
RICS professional standard on Reinstatement cost assessment of buildings 3rd edition 2018 identifies
- the manner in which assessments should be approached
- the nature and extent of the information to be collated and
- the manner in which this information should be processed and the assessment calculated
and submitted.
What are the types of cost reinstatement assessment?
- Day one reinstatement
- Reinstatement including inflation provision
- Reinstatement less wear and tear (indemnity basis)
- Obsolete buildings
- Site clearance, debris removal and ‘making safe’
- Second-hand value of building materials
What is Day one cost reinstatement assessment?
Day one reinstatement - How most UK buildings are insured “new for old basis”. Known as declared Value - Cost of rebuilding on associated costs without inflation.
The declared value figure should be the equivalent of a fixed price, lump sum, competitive
tender submitted by a suitable and competent contractor for works to commence on site
on the first day of the period of insurance, together with appropriate allowances for demolition and other costs and all associated professional and
other statutory fees.
What is Reinstatement including inflation provision?
Reinstatement including inflation provision - Two separate parts to the policy, one sum is the declared value one allowance for inflation. Insurers accept a margin of error of 15% at the time of loss
What is Reinstatement less wear and tear (indemnity basis)?
Few buildings are insured on this basis of indemnity. Reduced value due to old age or poor condition upon assessment. Elements that have not useful life left will be valued at £0
When a building is very old or not in a good state of repair, the insurer may be unwilling to grant full
reinstatement cover or the insured may wish to save premium by having a lower sum insured
while accepting that there would be significant and inevitable betterment contribution to be
made in the event of repairs being necessary.
What is Obsolete building reinstatement assessment?
This rare basis of assessment could be suitable if a building would be demolished and rebuilt in a different and cheaper form if it was destroyed or seriously damaged. Partial damage would be repaired up to an agreed amount but beyond that amount the building would be knocked down and replaced by a modern building providing the same function. The premium would be calculated on the full cost of reinstatement of the existing building with a reduction to reflect that the insurers’ limit of liability is a lesser amount based on the demolition of what remains of the original building and the cost of the modern replacement. The saving in premium is relatively small as most losses are partial and the insurers would only save on larger claims.
This basis is particularly useful for both insured and insurer where the ‘obsolete’ building is a poor risk carrying a high premium. The insured saves on premium and the insurer has a lower exposure. Surveyors may be asked to assess the full reinstatement cost, as existing, and the comparable cost of the provision of a replacement with the same functionality to the client, which could be a different shape, or a more efficient or cost-effective design, e.g.
clear span portal frames in lieu of a cumbersome and costly north light roof with many
intermediate columns.
What is Site clearance, debris removal and ‘making safe’ reinstatement assessment?
Site clearance, debris removal and ‘making safe’ costs only - Buildings due for demolition, if damage occurs it can be brought forward. If demolition costs increase due to damage it is to be made safe.
What is Second-hand value of building materials reinstatement assessment?
Second-hand value of building materials - The value of items if they were sold on second hand. e.g. fireplace, roof tiles. Very rarely used.
What equipment is required for an inspection?
Mobile phone
Tape measure/laser
Binoculars
File, plans and other supporting information
Personal protective equipment (PPE) such as a fluorescent jacket, steel-toed boots, non-slip soled shoes, ear defenders, gloves, goggles and hard hat
Pen and paper / Dictaphone
What should you consider when conducting an external inspection?
Method of construction
Repair and condition of the exterior
Car parking / access / loading arrangements
Defects / structural movement
Check site boundaries with OS map and / or Title Plan
What should you consider when conducting an internal inspection?
Layout and specification - flexibility and obsolescence
Repair and maintenance
Defects
Services - age and condition
Statutory compliance e.g. asbestos, building regulations, health and safety, Equality Act, fire safety and planning
Fixtures and fittings and improvements
Compliance with lease obligations
What are the different ways that you could date a building?
Asking the client
Researching the date of planning consent or building regulations approval
Land Registry
Local historical records
Architectural style
Architects certificate of practical completion
