The new home-buyer's pack

The introduction of the home buyer’s pack in 2007 will herald significant changes for those professions most closely involved in property transactions, namely surveyors, solicitors and estate agents. Each of them has a potential liability arising out of the new system but the biggest challenge is undoubtedly faced by surveyors. The first problem is the sheer magnitude of the task.

The government has indicated that a lesser qualification will be introduced to allow enough new “surveyors” to be employed to carry out condition reports but the sheer volume will mean mistakes will be made. The surveyor is likely to under fire from both purchaser and vendor, the former for failing to spot defects and the latter for being over critical.

Solicitors may be subject to claims for either failing to put correct information in the pack on title or not explaining its contents to a purchaser. Estate agents could come in for criticism from their client for either over or under selling property in the light of the pack’s contents and subsequent mortgage valuations.

As the start date draws closer, both professionals and their insurers need to be aware of the potential new risks and consider how to manage and reduce them.

Beachcroft Wansbroughs
March 2005