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When is a Home Report Not Required?
A Home Report is a legal requirement if you are selling a property in Scotland. However, there are a few exceptions.
This article will explain the circumstances when a Home Report is not required in Scotland, so you can be prepared for this situation.
If the Property is Being Sold Privately
One of the most common reasons you won’t need a Home Report is if you’re selling the house privately to a friend or family member. As long as you haven’t marketed the property officially, then a private sale removes the need for a Home Report.
However, as soon as you advertise or market the property (e.g by uploading it to Rightmove, or by sending out flyers), you will require a Home Report. This applies even if you’re not using an estate agent.
This rule also applies to ‘Rent to Buy’ schemes where the landlord is selling the property to the sitting tenants. As they haven’t advertised the sale of the property, they can hand over the keys without the need for a Home Report.
A Home Report isn’t required for new builds and newly converted properties either. If the property hasn’t been lived in, used for residential reasons, or is being sold ‘off-plan’, then you won’t need to commission a Home Report.
Unsafe Properties or Properties with Demolition Consent
If the property is uninhabitable or has received demolition consent, you won’t need a Home Report prior to selling it. The property is deemed unsafe if it poses a serious risk to people’s safety and health.
If the property is being sold as a holiday let or seasonal let, it will be exempt from needing a Home Report. This applies to holiday lets where planning conditions restrict anyone living in the home for more than 11 months out of a 12-month period however this does mean that a Home Report is still required for second homes and things like holiday cottages that can be used all year round.
Groups of Residential Properties
If the sale involves lots of residential properties bundled together, like a portfolio, Home Reports are typically exempt. This is the case as the sale involves more than one home and is treated as a commercial sale under these conditions.
There are some exceptions to this rule, however, such as if the group sale includes ancillary houses, like lodges, a Home Report will still be needed. In this case, we would encourage you to seek advice from a qualified Chartered Surveyor.
Dual-Use and Mixed Sales
If the property is a mixture of residential and non-residential elements or the property is sold as part of a wider business deal, you will not require a Home Report.
A good example is if you’re looking to sell a property that has a shop on the ground floor and a flat above it. In this case, this will be considered dual-use and a Home Report will not be needed.
In the case of a mixed sale, if you’re selling land and a number of properties are included, you won’t have to commission a Home Report. However, this only applies if the buyer doesn’t plan to purchase the residential property separately from the land.
A Home Report is required in the majority of situations when selling a property in Scotland. However, as detailed above, there are a few exceptions. In any case, we would always advise seeking trusted, expert help from a Chartered Surveyor.
If you would like to get in touch or wish to request a Home Report, you can do so here.