TERMS OF ENGAGEMENT

DETAILED BELOW ARE OUR TERMS FOR THE HOMEBUYER SURVEY AND VALUATION SERVICE AND CONDITIONS OF ENGAGEMENT FOR STRUCTURAL/BUILDING SURVEY REPORTS.

TERMS OF ENGAGEMENT FOR THE STANDARD HOMEBUYER SURVEY & VALUATION SERVICE :-

PLEASE NOTE: These Standard Terms of Engagement form part of the contract between the surveyor and the Client A modified form of the Homebuyer Survey & Valuation Service applies in Scotland.

PART 1: GENERAL

1 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.)

2 The Surveyor who provides the Service will be a Chartered Surveyor, who is competent to survey, value and report upon the Property which is the subject of these Terms.

3 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.

4 Terms of payment. The Client agrees to pay the fee and any other charges agreed in writing before the report is handed to them.

5 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:

          a) 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
          b) 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.

6 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.

Back to Top

Leasehold properties

Appendix to the HOMEBUYER Report PLEASE NOTE: This Appendix is an integral part of the HOMEBUYER Report for all Leasehold Properties.

Everybody planning to buy a Leasehold property (most flats and maisonettes and a few other properties are Leasehold) is advised to pay particular attention to the terms of the Lease.

Your Legal Advisers, who are responsible for checking the Lease for you, do not normally see the Property - so it is only the Surveyor who has the opportunity to note any specific features which have legal implications.

Any such matters are reported in Section E: Legal & Other Matters (where you are advised to pass a copy of the Report immediately to your Local Advisers).

In arriving at the opinion of the Open Market Value of the Property (Section G: Valuation), unless otherwise stated the Surveyor assumes that all the terms which might have an affect on the value of the Property are standard ones*, and that only a small ground rent is payable. This should not be relied upon, however, without being checked by your Legal Advisers.

You are advised to ask your Legal Advisers to supply the answers to the following questions:

a) Are the other flats occupied by owners or tenants?

b) Is there a Management Company and/or Managing Agent correctly set up to deal with the running and maintenance of the block containing the Property?

c) Does a suitable annual maintenance and replacement fund exist, with suitable reserves. to deal with general cleaning, maintenance and repairs to the common parts, and repairs to the main structure, centralised heating installation, lifts, etc.?

d) What is the ground rent; what sum was last paid as a maintenance/service charge, and what period did it cover; and are the maintenance/service charge accounts satisfactory and up-to-date?

e) Is there evidence of regular maintenance of services; and are there satisfactory current certificates for the testing/servicing/maintenance of the following, common services: (1) the lifts; (2) the fire escapes and the fire alarms; (3) the security system(s); (4) any common water/heating system; and (5) other communal facilities?

f) Are there any existing or foreseeable management problems or disputes, or any known outstanding repairs or prorammed works, which would affect the level of the service/maintenance charge payable?

g) Is the liability clearly set out - as between the Leaseholders, the Freeholder and the Management Company - for the repairs to the Property and to the common parts and the main structure; is the liability shared equally between Leaseholders; and is there suitable machinery for settling any disputes which may arise in this area?

h) Is it the Management Company or each individual Leaseholder who is responsible for the building, insurance, and is there a block insurance policy?

i) Are there any unusual restrictions on the sale of the Property?

----- ----- -----

* Full details of these assumptions are available from the Surveyor. The most important are, in brief:

· If there are more than six properties in the building, the Property is managed either directly by the freeholder or by a professional managing agent;

· If there is more than one block in the development, the Lease terms apply (except for upkeep of common roads, paths, grounds and services) only to the block containing the Property;

· There are rights of access and exit over all communal roadways, corridors, stairways, etc.. and to use communal grounds, parking areas and other facilities;

· Where there is more than one Leaseholder, all the Leases are the same in all important respects;

· The Lease has no particularly troublesome or unusual restrictions;

· There is no current dispute over the Lease or any outstanding claim or lawsuit concerning it;

· The unexpired term of the Lease is at least 70 years;

· The Property is fully insured.

CONDITIONS OF ENGAGEMENT FOR STRUCTURAL/BUILDING SURVEY REPORTS

A detailed inspection of the dwelling will be undertaken as far as access permits. We will advise upon the current condition and quality of the structure and fabric. Indication of where we feel short-lived materials exist and where future faults could occur, will be given, where these can be reasonably foreseen.

An indication will be given of the likely cost of essential repairs although this must be verified by detailed builder's estimates prior to committing yourself to a purchase.

We will make comment upon any adverse Highway, Planning or Environmental factors which are likely to affect the property both now or in the foreseeable future, as far as we are aware. Naturally, however, search enquiries to confirm this information must also be undertaken by your legal adviser in the normal manner. In addition, your legal adviser should establish that adequate Planning Approval and Building Regulation Consent has been obtained on any relevant development or building works which have been undertaken.

A replacement value for insurance purposes of the dwelling, garage and outbuildings will be provided. General advice will be given upon the property's future saleability and, if requested, we will also give our opinion as to the current open market value of the property. The definition of 'open market value' is the best price at which the sale of an interest in the property might reasonably be expected to have been completed unconditionally for cash consideration at the date of valuation assuming:

(a) A willing seller and a willing buyer;

(b) That prior to the date of valuation there had been a reasonable period (having regard to the nature of the property and the state of the market) for the proper marketing of the interest, for the agreement of price and terms and for the completion of the sale.

(c) That the state of the market, level of values and other circumstances were on any earlier assumed date of exchange of contracts the same as on the date of valuation, and

(d) That no account is taken of any additional bid by a purchaser with a special interest.

Our valuation is in accordance with the R.I. C. S. Appraisal & Valuation Manual issued by the Royal Institution of Chartered Surveyors.

Our valuation figure is net of any Value Added Tax which may be payable. Unless we advise you to the contrary in our report, all comments upon Leases, Guarantees, Tenancies, Legal Restrictions, Licenses, Agreements, Trading Accounts or other relevant matters will be based upon information gathered verbally from the Client, occupier or other persons stated within the report.No inspection of these documents will be made unless stated to the contrary in the report.

We will indicate the approximate size of the Plot where this can be accurately established. An inspection of the boundaries will be made and we will comment upon any poorly defined areas. We will also comment upon any obvious physical encumbrances to the property, e.g. rights of way, easements, tenancies etc. However, some encumbrances may not be obvious from an inspection and it is for your legal adviser to make more categoric investigation.

Every effort will be made to inspect as much of the building as possible. We would particularly wish to stress the limitations of our inspection, however, insofar as we cannot comment upon those areas obscured or inaccessible and neither can we say that such areas are free from defect. In particular where the property is furnished, it is normally the case that some areas cannot be inspected, e.g. below fitted carpets and behind heavy furniture or other effects. Naturally, where we consider a fault may be concealed further investigation will be recommended.

Our comments and recommendations within the report will be based upon a single inspection. No monitoring of cracks, damp areas or other faults will be possible. Without the benefit of an inspection of the property over time it may not be possible to come to categoric conclusions in some instances and we will indicate where further investigation and monitoring would be prudent.

No investigation of the subsoil or foundations will he undertaken; neither will any trial bore holes be dug. It is not usually practical, within the limitations of the time available, to inspect geological maps, ordnance survey maps or aerial photographs of the area around the property. If from examination of the building above ground level, there are indications of movement, failure of the foundations or other grounds to suspect subsidence, heave or landslip problems, we will make appropriate comment and advise you upon where we feel further specialist investigations would be prudent.

We cannot advise whether high alumina cement concrete, calcium chloride additive or other deleterious material has been used in the construction of any part of the buildings. No tests of asbestos materials will be undertaken but we will indicate in our report where it has been found and whether it is likely to be a health hazard.

Where securely fixed floorboards, such as the modern tongue and groove board variety, are laid to floors, it is usually not possible to lift them without damage. We will try to lift some floorboards to undertake an inspection of the subfloor void. Our inspection will be restricted to areas not concealed by fitted carpets or other effects and will naturally only be undertaken with the consent of the Vendor or occupier. Thus, no comprehensive inspection of the subfioor void is usually possible. We will indicate in our report where these inspections were made and our specific advice will be limited to these areas. A more general comment will apply to the floors as a whole.

All roof spaces and cellars will be inspected where access hatches are reasonably accessible and of an adequate size. Naturally, we cannot comment upon the form of construction or condition to those areas where no inspection is undertaken. Neither can we say that these areas have adequate thermal insulation or ventilation and whether any vapour barriers have been incorporated, where this is appropriate.

We are equipped with a portable ladder extending to a height of about four metres. Close inspection of areas beyond this height, for example, flat roofs to two storey buildings, dormer window roofs, chimney stacks, valleys, etc. can only be undertaken where reasonable access exists. We would be pleased to arrange for more detailed access where this has been confirmed in writing with you prior to our inspection.

No inspection of chimney flues or linings will be made unless an openable flue door exists. Neither will it be possible to determine the performance of flues or fires.

We will provide you with our assessment of the current cost of rebuilding the premises for fire insurance purposes. It should be borne in mind, however, that this figure is based upon current building costs and bears no relation to its market value. It is prudent to index link this figure. All properties should be fully insured for subsidence, settlement, landslip, flooding and heave.

Except where it forms part of the structure of the dwelling, only a superficial inspection of garages and outbuildings will be undertaken. Moreover, a superficial inspection only will be undertaken to garden walls, gardens, fences, paths etc. We can, of course, undertake a more detailed inspection of these areas where this has been agreed in writing with you prior to our inspection.

A visual inspection only will be undertaken to services as far as access permits. This will include electric wiring, gas services, underground drainage systems, plumbing and heating. Unless agreed prior to our survey inspection, no specialist tests will be undertaken to services. In particular it will be necessary to undertake a specialist pressure test of the drains before we could say whether there are any leaks present. Where we do have cause to suspect faults or shortcomings to services as a result of our inspection we will recommend where specialist tests would be prudent.

We would be pleased to arrange tests upon the services to the property if you so wish. The fee we have quoted for our building survey would be exclusive of the cost of the specialist tests. Their fees must be settled by you direct with them. Whilst we can suggest specialist firms whose work is known to us and who have provided satisfactory service in the past we cannot be held responsible for any damage or negligence caused by the specialist firm.

No inspection of specialist services or appliances such as lifts, burglar alarms, water softeners, fire alarms, swimming pool systems, filtration plants, air conditioning or other appliances or machinery, will be undertaken. You should arrange for your own specialist inspections if you do require a report upon these items.

Unless stated in our report to be present it is not always possible to state whether cavity wall insulation has been installed. Neither is it usual for us to establish the type, size, adequacy or condition of cavity wall ties. Thus, it will only be where these elements are causing a detectable fault at the time of our inspection that a report will be made upon them.

It will be assumed in our report that you have personally inspected the property and that you have satisfied yourself that the size, type and layout of the accommodation, outbuildings and grounds suit your requirements. We would be pleased to advise you upon any particular requirements you have concerning the use or alteration of the property where this has been confirmed in writing prior to our inspection.

The report will be confidential to you, your professional adviser and any other person expressly stated in our report. We accept responsibility to you alone that the report will be prepared with the skill, care and diligence reasonably to be expected of a competent Chartered Surveyor. We accept no responsibility whatsoever to any person other than yourself., any such person relies upon the contents of the report at their own risk. Neither the whole or any part of this report or any reference to it may be included in any published document, circular or statement without PEARCY BLACKMAN's prior written approval.

When making our report the following assumptions will be made, namely:

1 . The property is not subject to any unusual or specially onerous restrictions, encumbrances, outgoings and that good title can be shown.

2. The property and its value would be unaffected by any matters which would be revealed by local Searches and replies by usual enquiries or any statutory notice and that neither the property nor its condition or its use, nor its intended use, is or will be unlawful.

3 . That any alterations or additions, in the form of material development already carried out to the property have, where required, been granted all relevant local authority approvals.

4. That inspection of those parts which have not been inspected would neither reveal material defects nor cause us to alter the valuation materially.

We will not carry out an Environmental Audit or any other environmental investigation or soil survey on the property which if undertaken may draw attention to any contamination or the possibility of any such contamination. In undertaking our work, we will assume that no contaminative or potentially contaminative uses have ever been carried out on the property. We will not carry out any investigation into past or present uses, either of the property or of any neighbouring land to establish whether there is any potential for contamination from these uses or sites to the subject property and will therefore assume that none exists. Should it, however, be established subsequently that contamination exists at the property or on any neighbouring land or that the premises have been or are being put to any contaminative use then this is likely to affect the valuation we will give, possibly significantly.

Finally, for your own security, we feel it is always prudent to replace the locks to external doors upon taking ownership of the property.

Our fee quoted for this report is based upon the description and detail of the property we have available. Our account is to be paid within 14 days of the issue of the fee account. Interest at the rate of 2% per month will be charged on overdue accounts.

This firm complies with and operates the RICS Mandatory Complaints Procedure in respect of all Survey and Evaluation work. A copy of this is available upon request.

Back to Top