When a property goes ‘sale agreed’, it is recommended that a buyer has a survey completed.
This is the buyer’s chance to do their due diligence and ensure that they are happy to buy the property. Buying a property is one of the biggest, most important purchases in life.
‘Caveat emptor’ is a legal principle that means ‘let the buyer beware’ and it applies to the buying of homes and properties, just as it does for other big transactions and purchases. A buyer should know that a person selling a property is not obliged to ensure a property is free of problems or issues. It’s up to the buyer to satisfy themselves of its condition. While there can be exceptions – in cases where fraud or misrepresentation has occurred – the physical state, condition and repair of a property is usually a matter solely for a buyer, not the seller.
The purpose of having a survey completed before a buyer signs a contract is to ensure that they understand the state of the property before they commit to buying it. If there are works to be carried out to the property, the buyer can establish the cost of those in order to make an informed decision before signing a contract and committing to buying the property.
Generally speaking, a survey is a professional opinion on the condition of the property and its suitability for purchase. A good survey will include a list of any structural issues identified by the surveyor.
It is not recommended that a buyer rely on a ‘valuation report’ carried out by a lender (if the purchase of the property is being financed by a loan). A valuation report usually only establishes the market value of a property, assessing its loan-to-value ratio. Valuers are not usually engineers or architects and so won’t be concerned with any defects or problems, except where they might affect the value of the property.
It’s important to arrange a survey for any property you’re hoping to buy – irrespective of whether it’s recently built or an older property. A new or recently built house may still have issues and special attention should be paid to ‘once-off’ builds, particularly those built by direct labour. It is also recommended that any instructions to a surveyor be in writing.
A good surveyor should look at everything relevant to the house, its state and condition and its services. In addition, a good survey may cover many other issues, such as (but not limited to):
- Whether or not the property is liable to flooding,
- Any environmental concerns e.g. damp/mould,
- Any issues relating to pyrite/mica,
- Feedback on visible aspects related to energy efficiency,
- Whether the access to the property is shared with any third party or neighbour,
- Whether the property is affected by any rights of way, or
- Whether there are any issues with boundary walls.
The survey should also cover issues with septic tanks, access, and access to services. It’s also important for the surveyor to check the boundaries of the property – the seller’s solicitor will be able to provide a copy of the map.
If the property is an apartment, it should also be surveyed for possible fire-safety issues or problems. A buyer needs this information. Should any serious fire-safety concerns be identified, it can be a serious problem for the owner.
Once a buyer has the survey results, they have a number of options. The buyer may be happy to proceed with buying the property. Should significant issues be discovered, however, they may consider asking the seller to fix those or may wish to try renegotiating the ‘sale-agreed’ price. They may even decide to pull out of the purchase altogether.
Buying a family home is an investment, and it is understood that all properties will need work and maintenance over time. That said, a buyer does not want to be hit with an unexpected issue shortly after they receive their keys. So, remember, buyer beware!
Deborah Leonard is the Executive Secretary to the Conveyancing Committee and Senior Policy Advisor – Conveyancing in the Law Society. She achieved her Bachelor of Law degree from NUI Dubin in 2001 and subsequently qualified as a solicitor in 2006. Her post-qualification experience has been gained both in practice and in an in-house property role. Deborah has a particular interest in conveyancing practice reform.
Disclaimer: Please note that this article is for general information purposes only and does not purport to be legal advice. While every care has been taken in its production, no legal responsibility or liability is accepted, warranted or implied by the author, publishers, or the Law Society of Ireland in respect of any errors, omissions or misstatement. Readers are advised to seek independent professional legal advice before buying/selling a property.
