Who pays for Structural Survey?

Denisze

My sister and I are the vendors of a property after the sad loss of our parents. My parents lived there 65 years. The house is approximately 120 years old (from memory). It has a main road to the front and a railway line to the back. It is a 3 bedroom terraced house in Cardiff, CF5 1JR.

Bearing in mind it hasn’t been maintained too well for around 5 years because we were caring for Mum therefore it does have some wall cracks and damp. The main crack is clearly visible as you walk into the back bedroom and goes from inside to out, the others are in the living room.

We have had two builders assess the property who have reassured us that there is no subsidence. The bedroom crack is because it’s an old house with a main road one side and a railway line the other. In the living room, one crack is where there was once a door and the others are plaster cracks. They have also said the damp will be easy to sort out. Quotes for the work required were approximately four days work at around £3000 including decorating of the two rooms.

The house was valued at £285,000 in July 2022. We do understand the current climate and after discussions with our estate agent the house was then reduced to £260,000, then £250,000. Our builder couldn’t start until Monday 6th March so with this in mind we spoke to our estate agent and reduced the house to double the cost of the work quote at offers over £244,000. This attracted viewings and we accepted an offer of £247.000.

The mortgage valuation has come back as follows:

A damp proof report and estimate from a registered damp contractor in the applicant’s name

(e.g. a member of the Property Care Association).

A structural report and estimate (in the applicant’s name and with our interest noted on the report) from a

reputable structural engineer.(e.g. a member of the Institute of Chartered Engineers, Institute of Structural

Engineers or Chartered Building Valuer (MRICS or FRICS).

A timber report and estimate in the applicant’s name from a reputable timber contractor

(e.g. a member of the Property Care Association).

Listed above are the reports we require. Detailed below are the full comment(s) made by the valuer relating

to the reports:

Evidence of dampness was noted to both the ground and first floor. A further inspection of all parts of the

property should be undertaken by a specialist contractor who is a member of the Property Care Association,

and all recommended remedial work carrie d out, backed by an appropriate insurance backed guarantee.

The property has suffered structural movement. A Structural report is required from a Structural Engineer or

Chartered Building Surveyor before the valuation can be completed.

Our estate agent emailed me yesterday as follows:

“I think that in order to keep the sale you will need to get these reports done, and as I said previously I thought you may have to get a structural report done by a professional to demonstrate there are no structural problems. We can point you in the right direction on who to speak to and just to say that regardless of whether it was a cash buyer or not a surveyor would still pick up these points”

Please correct me if I’m wrong but I was always under the impression that the buyer paid for these? I also note that they bracket (in applicants name) and to note it with the interest of the mortgage provider. We have already told our estate agent that we would renegotiate the price accordingly should anything be flagged up in a survey.

The part where our estate agent mentions he said previously about this. We had other first time buyers interested who could not afford a survey just as this first time buyer can’t afford them. We have already been told our buyer is now nervous.

Our builders are still available on 6th March which is only 10 days away now so to be honest we are not desperate for this sale. It has been removed from market at the buyers request so as an alternative we could get the work done and re-market it crackless and dampless. We have also been discussing having a damp course done. I feel that without an evident crack staring back at you and reassurance of a new damp course this may attract more offers.

So, apologies for the essay but can anyone advise:

1: Who pays for the survey in the above circumstances?

2: Bearing in mind our buyer is already nervous are we better pulling out and making better use of the £650 (ish) which would be paying for a survey and damp report by using it towards the damp course?

Thanks so much in advance and apologies again for the essay. I will reply but I may only online once daily at the moment so please bear with me

Denise

user1977

It would make more sense for a buyer to get their own surveys because apart from anything else, they wouldn't normally be able to rely on a survey instructed by you (though it is possible to get them re-addressed). And they might also prefer to trust their choice of surveyor rather than let you choose a "friendly" one.

daveyjp

It is the buyer who pays for any surveys.  You are best not getting involved in commissioning third party surveys or remediation.  Damp proofing work in itself can be waste of money.

IMHO I'd market the property as is and sell to someone who is happy to do the work.  The problems are typical for a property of that age and there are people out there happy to look at properties which need work.

tooldle

Agree, surveys and reports are for the benefit of the buyer. 
Do you have a photo of the crack in bedroom?
With a house of that age, i wouldn't mess about with adding a dpc. 
Where in the house are the signs of damp? 

propertyrental

Denisze said:

......

The mortgage valuation has come back as follows:

A damp proof report and estimate from a registered damp contractor in the applicant’s name

(e.g. a member of the Property Care Association).

A structural report and estimate (in the applicant’s name and with our interest noted on the report) from a

reputable structural engineer.(e.g. a member of the Institute of Chartered Engineers, Institute of Structural

Engineers or Chartered Building Valuer (MRICS or FRICS).

A timber report and estimate in the applicant’s name from a reputable timber contractor

(e.g. a member of the Property Care Association).

Listed above are the reports we require. Detailed below are the full comment(s) made by the valuer relating

to the reports:

......

1: Who pays for the survey in the above circumstances?

It's clear from the points in bold above

2: Bearing in mind our buyer is already nervous are we better pulling out and making better use of the £650 (ish) which would be paying for a survey and damp report by using it towards the damp course?

Buyer wants (needs) the survey soit will cost you nothing.

Also be wary about the Property Care Association!

Fill the cracks and redecorate.
Deal with the damp - do you know what is causing it?
Re-market 

AskAsk

the buyer should pay for the reports as you commisioning the reports may be biased.  i would tell the estate agent that the buyer needs to pay for the reports and you can discuss the results with them should issues arise from the inspection and the agreed price needs to be re-nogiated.

however, if it has been on sale for a while and no one buys it, it may be worth while getting the reports to pre-empt any buyer worry, to demonstrate that there is no issue, or to re-value the property asking price if there is an issue.  if the property has severe structural issues then you will need to market the property very cheaply to attract a buyer as they will need to pay for remedial works.

Noneforit999

Have they told you what is causing the damp?

Its useless treating the damp itself until the actual cause is dealt with so if you are going to get any work done, ensure the cause of the damp is treated properly.

As above, buyer would usually pay for the report.

Realistically, you have two options:

1. Pay for the report and get the work done. Then keep the purchase price as is.
2. Get the buyer to pay for the report which will estimate the cost for them and reduce the price accordingly.

My only concern about getting the work done yourself would be spending the money and the buyer still pulling out for some reason or try to chip you down money before exchange etc. 

A nervous buyer looking at a 120 house is probably not a good combination, a house of that age is likely to have some issues to sort and will require some money later down the line. 

SensibleSarah

Personally, as I know my 90 year old house has some issues, I'm planning on getting a structural survey before I put my house on the market - mainly so that I can factor in whatever work it needs to the asking price and be up front with potential buyers. It's obviously not required for me to do that, but I want to make sure that I'm armed with all the info I can be so that I end up getting a fair value for it. Might seem a waste of money for some, but it'll give me peace of mind and make sure I'm prepared with my own 'evidence' if a potential buyer tries to negotiate the price down. 
If buyers want to do their own structural survey as well, no issue with that of course. I couldn't afford one when I was a first time buyer.
My house is only likely to appeal to FTB as it's a small 2-bed, so nervous buyers are likely to be the norm and hopefully already having info about what work it needs will help them either decide it's not for them and not to make an offer, or at least mean there are no big nasty suprises if they do their own survey. 

Denisze

SensibleSarah said:

Personally, as I know my 90 year old house has some issues, I'm planning on getting a structural survey before I put my house on the market - mainly so that I can factor in whatever work it needs to the asking price and be up front with potential buyers. It's obviously not required for me to do that, but I want to make sure that I'm armed with all the info I can be so that I end up getting a fair value for it. Might seem a waste of money for some, but it'll give me peace of mind and make sure I'm prepared with my own 'evidence' if a potential buyer tries to negotiate the price down. 
If buyers want to do their own structural survey as well, no issue with that of course. I couldn't afford one when I was a first time buyer.
My house is only likely to appeal to FTB as it's a small 2-bed, so nervous buyers are likely to be the norm and hopefully already having info about what work it needs will help them either decide it's not for them and not to make an offer, or at least mean there are no big nasty suprises if they do their own survey. 

Thank you for your reply .  We would have certainly done that if advised to do so at the start of the sale and will certainly look at it before re-marketing.

Our estate agent has over 25 years experience in local estate agency.  We feel that as vendors we should have been better protected and that the buyers interests came before ours.  I'm confident I haven't learnt in one day what he hasn't in 25 years (if so I'm in the wrong job), with this in mind he would be well aware that with the evident cracks in the property a mortgage company was going to ask for a buyer survey.

We do feel that the bracketed (in applicants name) and noted in interest of mortgage provider was overlooked by our estate agent in the report.  He was happy for us to go ahead and arrange both the survey and damp/timber report to take place next week which commissioned and paid for by us.  This would have been a waste of approximately £650 of our money for this sale as the reports would have been useless for our buyers mortgage application progression which is what this post is regarding.  

With respect, saying what should have been done at the start of the sale is not beneficial now in the situation we find ourselves in as the mortgage provider would have still wanted buyer surveys and we have a buyer who cannot afford them for a second time.

Kind regards & thank you for your advice, we will certainly get a report done before re-marketing.

Denisze

user1977 said:

It would make more sense for a buyer to get their own surveys because apart from anything else, they wouldn't normally be able to rely on a survey instructed by you (though it is possible to get them re-addressed). And they might also prefer to trust their choice of surveyor rather than let you choose a "friendly" one.

Thank you so much for your advice.

Denisze

user1977 said:

It would make more sense for a buyer to get their own surveys because apart from anything else, they wouldn't normally be able to rely on a survey instructed by you (though it is possible to get them re-addressed). And they might also prefer to trust their choice of surveyor rather than let you choose a "friendly" one.

Thank you so much for your reply.  We have decided to pull out of the sale as it would have possibly involved 3rd party surveys if the mortgage provider agreed which thanks to the amazing advice on this forum we are not happy to get involved in.