Buying a property is one of the biggest financial commitments most people will make. Yet buyers can sometimes make an offer based largely on the estate agent’s particulars, viewing the property and the information contained in the memorandum of sale.
These documents are important, but they are not a substitute for an independent professional survey.
An estate agent’s role is to market the property and facilitate the transaction. An independent surveyor, acting for the buyer, has a different purpose: to provide an objective assessment of the property’s condition and identify defects, risks and areas requiring further investigation.
Written by Felix Otuoke, Company Director / Solicitor
What the survey can uncover
Some problems are obvious. Many are not.
An independent survey may identify issues involving the roof, damp, structural movement, drainage, timber, insulation, windows, alterations, maintenance or other parts of the building that may not be apparent during a normal viewing.
A survey may also highlight matters that warrant specialist investigation or further professional advice.
These findings can be significant because the true cost of owning a property is not simply its purchase price. It also includes the cost of bringing the property into a satisfactory condition and addressing defects that may not have been apparent when the offer was made.
The survey can change the financial equation
Imagine agreeing to purchase a property for £450,000, only for an independent survey to identify substantial defects requiring £20,000–£30,000 of remedial work.
The buyer now has materially different information from that available when the offer was agreed.
That does not automatically mean the seller must reduce the price. However, before exchange of contracts, the buyer can use the survey findings, together with appropriate repair estimates or specialist reports, as a factual basis for reopening negotiations.
The parties may ultimately agree a price reduction, the seller may undertake particular works, or the buyer may decide that the property is no longer suitable on the original terms.
The important point is that the buyer has discovered the problem before becoming legally committed to the purchase.
A buyer with mortgage must bear in mind that where a price reduction is agreed by the parties, it is also very important to inform your lender of the price reduction. By so doing you offer you lender the opportunity to review the initial mortgage offer and to update it in accordance with the agreed reduced price.
Why timing matters
In England and Wales, the period before exchange of contracts is particularly important. Once contracts have been exchanged, the buyer is generally committed to completing the purchase, subject to the terms of the contract.
That is why obtaining an independent survey early enough to consider its findings is so important.
If significant defects are discovered, the buyer has time to:
- understand the problem;
- obtain specialist advice where necessary;
- obtain realistic quotations for remedial work;
- discuss the findings with the seller or estate agent;
- reconsider the purchase price; and
- decide whether to proceed before exchange.
RICS recommends that buyers consider obtaining a survey and explains that survey findings can provide information that may assist with negotiating the purchase price.
Don’t confuse marketing information with a condition report
Property particulars and a memorandum of sale serve a different purpose from a survey.
The fact that a defect has not been mentioned in an estate agent’s report does not necessarily mean that the property is free from that defect. Equally, a buyer should not assume that an estate agent’s description amounts to a professional assessment of the building’s structural or physical condition. A survey provides another, independent layer of due diligence.
Knowledge gives the buyer options
The real value of an independent survey is not simply identifying defects. It is giving the buyer information before the point of commitment.
Armed with reliable information, the buyer can make a more informed commercial decision. If significant works are required, the purchase price can be reconsidered in light of the property’s actual condition rather than its appearance or original marketing.
In some cases, the survey may confirm that the property is in broadly the condition expected. In others, it may reveal issues that materially affect the buyer’s calculations.
Either way, knowledge before exchange is considerably more valuable than discovering an expensive problem after completion.
The bottom line
An independent survey should not be regarded as an unnecessary expense or simply another piece of paperwork in the conveyancing process.
It is an important part of a buyer’s due diligence.
Before committing to one of the largest purchases of your life, make sure you understand not only what the property is being sold for, but what you are actually buying.
A professional survey can provide the evidence needed to make that decision—and, where significant defects are identified, potentially give you the information needed to renegotiate the purchase price before it is too late.
Need legal advice? We’re here to help.
If you have questions about your situation or need advice on your next steps, our experienced legal team can help.
Call us on 020 7928 0276 between 9:30am and 6:00pm, or email [email protected].
You can also contact us online by completing our short enquiry form. Tell us a little about your situation and we’ll get back to you as soon as possible.
Not sure which service you need? Get in touch and we’ll help you identify the right team.
