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Tuesday, 26 January 2016 00:00

Surveyors Association Calls for Clearer Advice for Homebuyers

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The Residential Property Surveyors Association (RPSA) has called for clearer advice for Homebuyers when purchasing a property. They are calling for all mortgage lenders to emphasise the importance of obtaining an independent survey of the condition of the property they are about to buy.

http://www.todaysconveyancer.co.uk/surveyors-association-calls-for-clearer-advice-for-home-buyers/

Property buyers often confuse a Lender Valuation Report with a Homebuyer Survey

A Valuation Report is for your lender. A Homebuyer Survey is for YOU. The two things are different and should not be confused with eachother. The difference between them is:

    • A Lender Valuation Report - A report that tells your mortgage lender that the property is worth the purchase price or price you have negotiated for the property - Almost a financial health check. If a property is not worth accepted purchase offer, then the lender either withdraws from lending the money or will offer a lower amount that they will lend.
    • A Homebuyer Survey - It tells the buyer (YOU) about the property condition and what is required to bring it up to a RICS standard. – A property condition health check.

If a property requires a number of repairs, then the buyer can pull out of the purchase or they can renegotiate the purchase price. When purchase offers are made they are usually made 'Subject to Survey'

Homebuyers and Investors need impartial advice from experts.

So in summary the RICS Homebuyer Report Survey acts for both Lender and Buyer - This explains the confusion. The Homebuyer pays for this report, even though the lender uses the information as well.

Read 2934 times Last modified on Friday, 28 July 2023 13:22
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