SURVEY & VALUATION

SCHEMES

What choice of surveys do I have?

There are three alternative Reports available:

Scheme 1 - Valuation Report

This is a brief report and valuation with no detail as to defects and assumes no hidden problems. It is comparable to a report for Building Society, Bank or other lending institution. 

It is suitable for valuation for probate, gift, part exchange, divorce settlement or private mortgage. 

Scheme 2 – HomeBuyer Survey and Valuation 

A standard inspection designed by the Royal Institution of Chartered Surveyors to provide a concise report on the condition of the property and a valuation.

The report follows a set format and focuses on essentials, i.e. defects and problems which are urgent or significance and thus have an effect on the value of the property. 

The inspection includes the roof void (if accessible) and any flat roofs within 3 meters of ground level. See Conditions of Engagement below for further information. 

The damp-proof course is electronically tested. A visual inspection of services including drainage, heating, electrical circuitry, etc. is made, but no tests are undertaken. 

Scheme 3 – Building Survey

A Building Survey is suitable for all residential properties and provides a full picture of their construction and condition. It is likely to be required if the property is, for example, of unusual or older construction, dilapidated or extensively altered.

 

The intention of the Building Survey is to provide as detailed a report as possible within the constraints of the inspection. 

The exterior of the property is inspected more extensively with builders in attendance providing a 5 meter ladder to assist inspection to eaves level. Additionally a water test of below ground drainage is undertaken. Internally, if access exists, roof voids are inspected. 

See Conditions of Engagement below for further information.

The damp-proof course is electronically tested. A visual inspection of services including heating, electrical circuitry, etc. is made, but no tests undertaken.

SCHEME 1 — VALUATION REPORT 

CONDITIONS OF ENGAGEMENT 1. TERMINOLOGY & CONFIDENTIALITY

In these conditions the expression “we” or “us” means Freeman & Mitchell Limited, Chartered Surveyors, and “you” means the client requiring the report. 

 

The report is provided strictly for the sole use of you as the named client and, where agreed in writing, your Solicitor. No responsibility is accepted to any person other than you. 

 

2. SCOPE OF INSTRUCTIONS

The report is given on the terms set out in these Conditions of Engagement. Its object is to advise you, in our standard report format, from a single limited visual inspection, on the market value of the property. 

 

Your choice of Report has been made from the brochure previously forwarded. 

 

3. EXTENT OF INSPECTION/REPORT

A limited inspection is undertaken of the external and internal fabric viewed from ground level and floor level only. A “head and shoulders” inspection of the roof void is made where reasonably accessible. Services are not tested. 

 

4. EXCLUDED MATTERS

The following items will be specifically excluded:- 

 

• Areas/parts which are covered, unexposed, out of view, or are not easily and safely accessible, or where damage would occur or where the vendor refuses access/inspection, (e.g. foundations; roof space if no safely accessible hatch; roof surface in hidden valleys; surfaces visible only from adjo­ining properties where access is refused or not possible at the time of inspection; floors covered with fixed coverings or furniture; hidden floor timbers; surfaces hidden by snow; cavity wall ties). 

 

• Moving furniture and roof insulation or emptying cupboards.

• Destructive or disruptive work to open up or dismantle the structure, or excavating pits in the ground around it, or assistance from tradesmen or specialists.*

• Use of special equipment (e.g. metal detector, level) or making calculations.*

• Testing of fitted appliances (e.g. hob, cooker etc.). 

 

*(indicates unless specifically instructed, agreed for an additional fee). 

 

The report will not purport to express an opinion about, or to advise you upon, the condition of uninspected parts. Minor defects and construction imperfections which do not materially affect the value of the property may not be mentioned. If any minor defects are reported you must not take this as implying that there are no other such defects. 

 

The report is also not a detailed defect “snagging list” (as would be appropriate in contractual arrangement for a new building), nor a structural design analysis, nor a check on compliance with statutory regulations, nor are any repairs listed to be construed as full specification descriptions. 

 

There is always a possibility of hidden defects, including very slight structural movement, which would only be detected by dismantling the structure or by using levelling or other special equipment, which is outside the scope of this level of inspection. 

 

5. ASSUMPTIONS

We will make the following assumptions, not subject to verification by us: that

• No deleterious or hazardous materials or techniques have been used, and the site is not contaminated;

• No unusual or especially onerous restrictions, encumbrances or outgoings exist and that good title can be shown;

• No detrimental matters will be revealed by a Local Search and Replies to the Enquiries before Contract. or by a Statutory Notice, and that neither the property, nor its condition, nor its use nor intended use, is, or will, be unlawful;

• All appropriate statutory approvals exist;

• No material defects will be revealed by inspection of hidden parts of the structure or by testing services not covered by our report. 

 

6. RICS APPRAISAL & VALUATION MANUAL

Market Value - Definition: The definition of Market Value (MV) is: 

 

The estimated amount for which a Property should exchange on the date of Valuation between a 

willing buyer and a willing seller in an arm’s-length 

transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. 

 

Insurance Cover (Reinstatement Cost) - The Surveyor’s statement of his opinion of the Reinstatement Cost is to include the substance of the following: 

 

• That the current cost of reinstating the Property in its present state is estimated for insurance purposes to be approximately .................... (the amount to be given in words as well as figures). 

 

• That the estimated external area of the 

accommodation is approximately .................... (area to be given in square metres). 

 

• in the case of flats, maisonettes and other such 

leasehold properties, that the estimate is made on the assumption that the Property is insured under a satisfactory policy covering the whole building. 

 

© Copyright Designs and Patent Act 1988 - All rights reserved. 

No part of these notes may be published or copied in any way without the prior written permission of Freeman & Mitchell Limited, Chartered Surveyors, 28 The Ropewalk, Nottingham, NG1 5DW. 

FM/CE/VR/2

SCHEME 2 - RICS HOME BUYER SERVICE

The Service 

The RICS Home Buyer Service Includes: 

 

  • an inspection of the property (see ‘The inspection’ below); 

  • a report based on the inspection (see ‘The report’ below); and 

  • a valuation, which is part of the report (see’The valuation’ below). 

The surveyor who provides the RICS HomeBuyer 

Service aims to give you professional advice to help you to: 

  • make a reasoned and informed decision on whether to go ahead with buying the property; 

  • take account of any repairs or replacements the property needs; and; 

  • consider what further advice you should take before exchanging contracts (if the property is in England, Wales, 

Northern Ireland, the Isle of Man or the Channel Islands) or concluding an offer (if the property is in Scotland). 

The Inspection 

The surveyor inspects the inside and outside of the main building and all permanent outbuildings, but does not force or open up the fabric. This means that they do not take up carpets, floor coverinings or floorboards, move furniture, remove the contents of cupboards, remove secured panels or undo electrical fittings. If necessary, the surveyor will carry out parts of the inspection when standing at ground level from public property next door.

 

The surveyor may use equipment such as a damp-metre, binoculars and torch, and may use a ladder for flat roofs and for hatches no more than three metres above level ground (outside) or floor surfaces (inside) if it is safe to do so. 

Services to the property 

Services are often hidden within the construction of the property and, as a result, only the visible parts of theavailable services can be inspected. The surveyor will not carry out specialist tests, or test or assess the efficiency of electrical, gas, plumbing, heating or drainage installations (or whether they meet current regulations) or the inside condition of any chimney, boiler or other flue. 

Outside the property 

The surveyor inspects the condition of boundary walls, fences, permanent outbuildings and areas in common (shared) use. To inspect these areas,the surveyor walks around the grounds and any neighbouring public property. 

Flats 

When inspecting flats, the surveyor will assess the general condition of outside surfaces of the building, as well as its access areas (shared hallways, staircases and so on). The surveyor will inspect roof spaces only if they can gain access to them from within the property. The surveyor will not inspect drains, lifts, fire alarms and security systems. 

 

Dangerous materials, contamination and environmental issues

The surveyor will not make any enquiries about contamination or other environmental dangers. However, if they suspect a problem, they should recommend a further investigation. Buildings with swimming pools and sports facilities are also treated as permanent outbuildings, but the surveyor will not report on the leisure facilities, such as the pool itself and its equipment, landscaping and other facilities (for example, tennis courts and temporary outbuildings). 

The surveyor may assume that no harmful or dangerous materials have been used in the construction, and does not have a duty to justify making this assumption. However, if the inspection shows that these materials have been used, the surveyor must report this and ask for further instructions.

 

The surveyor will not carry out an asbestos inspection, and will not act as an asbestos inspector when inspecting properties that may fall within the Control of Asbestos Regulation 2006. With flats, the surveyor will assume that there is a dutyholder (as defined in the regulations), and that an asbestos register and an effective management plan is in place which does not need any immediate payment or present a significant risk to health. The surveyor will 

not consult the dutyholder. 

The Report 

The surveyor produces a report of their inspection for you to use, but cannot accept any liability if it is used by anyone else. If you decide not to act on the advice in the report, you do this at your own risk. The report focuses on matters that, in the surveyor’s opinion, may affect the value of the property if they are not delt with. 

The report is in a standard format and includes the following sections. 

A     Introduction to the report 

B     About the inspection 

C     Summary of the condition ratings 

D     About the property 

E     Outside the property 

F      Inside the property 

G     Services 

H     Grounds (including shared areas for flats) 

I       Issues for your legal advisers 

J       Risks 

K     Valuation 

L     Surveyor’s declaration 

 

What to do know 

Description of the Home Buyer Service 

House diagram 

The surveyor gives condition ratings to the main parts (or ‘elements’) of the main building, garage, and some outside elements. The condition ratings are described as follows. 

Condition rating 1 

No repair is currently needed. The property must be maintained in the normal way 

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 3 

Defects that are serious and/or need to be repaired, replaced or investigated urgently 

NI Not inspected 

The surveyor will note in their report if they were not able to check any parts of the property that the inspection would normally cover. If the surveyor is concerned about these parts, the report tells you about any further investigations that are needed. 

The surveyor will not report on the cost of any work to put right defects or make recommendations on how these repairs should be carried out. However, there is general advice in the ‘What to do now’ section at the end of the report. 

If, during the inspection, the surveyor identifies issues that your legal advisers may need to investigate further, the surveyor will refer to these in the report. The surveyor will state the Energy Efficiency Rating and Environmental Impact Rating as stated on the Energy Performance Certificate on the home, if available. The surveyor will not specifically comment on any legal documents or any documents that may included in a Home Information 

Pack or Home Report. 

There is no contamination in or from the ground, and the ground has not been used as landfill; 

the property is connected to, and has the right to use, the mains services mentioned in the report; and the valuation does not take account of any furnishings, removable fittings and sales incentives of any description. 

Legal matters 

The surveyor will assume that: 

the condition of the property, or the purpose that the property is, or will be, used for does not break any laws; no particularly troublesome or unusual restrictions apply to the property, that the property is not affected by problems 

which would be revealed by the usual legal inquiries, and that you have applied for and acted in line with all necessary planning permission and Building Regulations permission (including permission to make alterations); and 

the property is sold with ‘vacant possession’ (your legal adviser can give you more information on this term); 

the property has the right to use the mains services on normal terms, and that the sewers, mains services and roads 

giving access to the property have been ‘adopted’ (that is, they are under local authority, not private, control). 

The surveyor will report any more assumptions they have made or found not to apply. 

If the property os leasehold, the general advice referred to above will explain what other assumptions the surveyor has made. 

Reinstatement cost 

‘Reinstatement cost’ is the cost of rebuilding an average home of the type and style inspected to its existing standard using modern materials and techniques and in line with current Building Regulations and other legal requirements. This includes the cost of rebuilding any garage, boundary or retaining walls and permanent outbuildings, and clearing the site. It also includes professional fees, but does not include VAT (except on fees). 

Standard terms of engagement 

The service - the surveyor will provide the standard RICS Home Buyer Service (‘the service’) described in the 

‘Description of the RICS Home Buyer Service’, unless you and the surveyor agree in writing before the inspection that the surveyor will give you additional advice. The surveyor providing the service will be a full Member or 

Fellow of the Royal Institution of Charted Surveyors, who has the skills, knowledge and experience to survey, value 

and report on the property. The reinstatement cost will help you decide on the amount of 

buildings insurance cover you will need for the property. 

Market value 

‘Market value’ is the estimated amount a property should exchange for, on a date of the valuation, between a willing 

buyer and a willing seller, in an arm’s length transaction after the property was properly marketed wherein the parties had each acted knowledgeably, prudently and without compulsion. When deciding on the market value, the surveyor also makes the following assumptions. 

The materials, construction, services, fixtures and fittings,and so on 

The surveyor will assume that: 

an inspection of those parts which have not yet been inspected would not identify significant defects or cause the 

surveyor to alter their valuation;

no dangerous or damaging materials or building techniques 

have been used in the property; 

The surveyor reports on property-related risks or hazards that will include defects that need repairing or replacing, as well as issues that have existed for a long time and cannot reasonably be changed but may present a health and safety risk or hazard. If the property is leasehold, the surveyor will give you general 

advice and details of questions you should ask your legal advisers.

 

The valuation 

The surveyor gives their opinion on both the market value of the property and the reinstatement cost at the time of their inspection. (See the ‘Reinstatement cost’ section opposite.) Before the inspection - you will tell the surveyor if there is already an agreed, or proposed, price for the property, and if you have any particular concerns (such as plans for extension) about the property.

Terms of payment - you agree to pay the surveyor’s fee 

and any other charges agreed in writing.

Cancelling this contract - you are entitled to cancel this contract by giving notice to the surveyor’s office at any time 

before the day of the inspection. The surveyor will not provide the service (and will report this to you as soon as possible) if, after arriving at the property, they decide that; 

they lack enough specialist knowledge of the method of construction used to build the property;

or it would be in your best interest to have a building survey and valuation, rather than the RICS Home Buyer Service. 

If you cancel this contract, the surveyor will refund any money you have paid for the service, except for any reasonable expenses. If the surveyor cancels this contract, they will explain the reason to you. Liability - the report is provided for your use, and the surveyor cannot accept responsibility if it’s used by anyone else. 

Complaints handling procedure 

The surveyor will have a complaints handling procedure and will give you a copy if you ask. 

Note: These terms form part of the contract between you 

and the surveyor.

SCHEME 3 — BUILDING SURVEY REPORT

CONDITIONS OF ENGAGEMENT

1. TERMINOLOGY & CONFIDENTIALITY

In these conditions the expression "we" or "us" means Freeman & Mitchell, Chartered Surveyors, and "you" means the client requiring the report.

 

The report is provided strictly for the sole use Of you as the named client and, where agreed in writing, your Solicitor in connection with the purchase. No responsibility is accepted to any person other than you.

 

Neither the whole nor any part of the valuation report/certificate or any reference hereto may be included in any published document, circular or statement, Or published in any way, without the Valuer's written approval of the form and context in which it may appear.

2. SCOPE OF INSTRUCTIONS

The report is given on the terms set out in these Conditions of Engagement. Its Object is to advise you, in our standard report format, from a single limited visual inspection, on:

  • the apparent performance of the main building and outbuildings (but not leisure facilities), their general condition and identification of any major defects, hazards and factors which could affect the market value of the property ;

  • the desirability of further more extensive and expensive Investigations;

  • the suitability for purchase for owner occupation considering these points;

  • the value of the property and reinstatement cost for property Insurance purposes (unless specifically excluded in the agreement and report). We may need to defer our valuation until further investigations have been made or contractors' estimates obtained.

 

Your choice of Report has been made from the brochure previously forwarded.

EXTENT OF INSPECTION/REPORT

We will carry nut such work as is reasonable in our professional judgement bearing in mind the limitations Of the agreed inspection. This will include:

 

  • Visually inspecting as much of the surface areas as is practical from ground and floor levels and, with tradesman assistance, from a 5 meter ladder giving access to the roof and upper levels;

  • Lifting loose floor boards and trap doors and inspecting voids, where accessible.

  • Lifting loose corners of floor coverings.

  • Inspection of roof void (but not of every timber);

  • Superficial inspection of services, and where agreed, testing the specialist;

  • Use Of moisture detection meter (at random); Lifting drain inspection covers, water pressure test on drains capable Of such.

 

EXCLUDED MATTERS

The following items will be specifically excluded:

  • Areas/parts which are covered, unexposed, out of view, or are not easily and safely accessible, or where damage would occur or where the vendor refuses access/inspection. (e.g. foundations; roof space if no safely accessible hatch; roof surface in hidden valleys; surfaces visible only from adjoining properties where access is refused or not possible at the time of-inspection; floors covered with fixed coverings or furniture; hidden floor timbers; surfaces hidden by snow; cavity wall ties.);

  • Moving furniture and roof insulation or emptying cupboards;

  • Destructive or disruptive work to open up or dismantle the structure, or excavating pits in the ground around it, or assistance from tradesmen or specialists;***

  • Use of special equipment (e.g. metal detector, level) or making calculations.***

  • Testing of fitted appliances (e.g. hob, cooker etc.).

 

***(indicates unless specifically instructed for an agreed additional fee.

The report will not purport to express an opinion about, or to advise you upon, the condition of uninspected parts. Minor defects and construction imperfections which do not materially affect the value of the property may not be mentioned. If any minor defects are reported you must not take this as implying that there are no other such defects.

The report is also not a detailed defect "snagging list" (as would be appropriate in contractual arrangement for a new building), nor a structural design analysis, nor a check on compliance with statutory regulations, nor are any repairs listed to be construed as full specification descriptions.

There is always a possibility of hidden defects, including very slight structural movement, which would only be detected by dismantling the structure or by using leveling or other special equipment, which is outside the scope of this level of inspection.

ASSUMPTIONS

We will make the following assumptions, not subject to verification by us: that

  • No harmful materials ot techniques have been used, and the site is not contaminated or at risk of contamination from nearby land (e.g. asbestos, high alumina cement, methane gas).

  • No unusual or especially onerous restrictions, encumber-brances or outgoings exist and that good title can be shown; No detrimental matters will be revealed by a Local Search and Replies to the Inquiries before Contract, or by any Statutory Notice, and that neither the property, nor its condition, nor its use nor intended use, is, or will, be unlawful;

  • All appropriate statutory approvals exist.

  • No material defects will be revealed by inspection of hidden parts of the structure or by testing Of services not covered by our report.

 

FEE

You will pay our fee and any agreed disbursements in full immediately upon receipt of the report, if not paid Ibr in advance.

FLATS

Flats will be inspected to the extent of item 3 above but with the following qualifications:

 

  • Included Outside - the subject property:

Sufficient of the remainder of the building in which it is situated;

Any other building of permanent construction agreed in writing between us;

Inside - the subject property and in a more superficial way,'

Those communal areas within the building from which the subject property takes access and on the floor or the subject property;

Such other communal areas, roof, roof spaces etc. notified by you and agreed between us to which access is available.

 

  • Excluded Lifting drain inspection covers, investigating or commenting upon lifts.

 

COMMERCIAL PROPERTIES

A commercial property will be inspected in principle to the same extent as given for flats.

FURTHER ADVICE

If, after receiving our Building Survey Report, you require further advice, we will gladly make additional visits, reports and comments upon papers referred to us, at extra cost.

Copyright Designs and Patent Act 1988 - All rights reserved NO part Of these notes may be published or copied in any way without the prior written permission of Freeman & Mitchell, Chartered Surveyors, 28 The Ropewalk, Nottingham, NGI 5DW.

© 2018 by Freeman & Mitchell Ltd. All rights reserved.

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