If your survey found problems, the most important step is not to commit to the purchase until you understand them. In England and Wales, an offer is not legally binding until contracts are exchanged, so there is usually time to take stock: understand the condition ratings, speak to your surveyor, arrange any further investigations and obtain quotations. You can then decide, with your conveyancer, whether to renegotiate, ask the seller to carry out repairs or withdraw.
This guide from the RICS Chartered Surveyors at Lansdown Associates explains each of those steps. It is general guidance only and is not legal advice. Any decision about the contract should be taken with advice from your solicitor or conveyancer.
Understanding what the report is telling you
Both our RICS Level 2 survey and our RICS Level 3 building survey follow the RICS Home Survey Standard, which gives the main parts of the property a condition rating:
- Condition rating 3: defects that are serious and/or need to be repaired, replaced or investigated urgently. RICS states that written quotations for repairs should be obtained before you make a legal commitment to purchase.
- Condition rating 2: defects that need repairing or replacing but are not considered serious or urgent.
- Condition rating 1: no repair is currently needed; the property should be maintained in the normal way.
- NI: not inspected.
- R: documents the surveyor suggests you request before you sign contracts.
Condition rating 2 items are not, in themselves, a cause for alarm. Every property requires maintenance. The matters that usually warrant attention before exchange are those rated 3, elements marked NI where the surveyor has concerns, and any recommendation for further investigation.
Further investigation recommendations
Where further investigation is recommended, RICS guidance says the report should describe the affected element and why investigation is needed, when it should be carried out and who should broadly carry it out. Where the recommendation is to investigate before legal commitment, treat it as a priority.
Risks and matters for your legal adviser
The report also summarises risks to the building, grounds or people, and may refer to matters for your legal adviser to check, such as whether a warranty covers replacement windows. Pass these to your conveyancer promptly.
Speak to your surveyor first
An RICS Chartered Surveyor can explain what a defect means in practical terms and what should happen next. From a surveying perspective, the cause of a defect must be understood before the cure is considered. A damp patch caused by a leaking gutter and one caused by a failed damp-proof course are very different propositions. Useful questions include:
- What is the most likely cause of this defect?
- Does it appear to be active or historic?
- Does it need to be dealt with before exchange, or can it be managed as normal maintenance?
- Who should carry out any further investigation?
- Were there parts of the property you could not inspect that concern you?
Arranging further investigations
Services are only inspected visually during a survey and are not tested, and some defects cannot be fully diagnosed without specialist input. Depending on the findings, further investigations may include:
- Heating and gas: a check by a Gas Safe registered engineer.
- Electrics: an Electrical Installation Condition Report from a qualified electrician.
- Drainage: a CCTV drainage survey.
- Structural movement: an assessment by a structural engineer. Our guide to what is subsidence explains the warning signs.
- Damp: an independent damp survey from a surveyor with no treatment to sell.
- Asbestos: an inspection by a suitably qualified asbestos surveyor, where the report identifies the possible presence of asbestos-containing materials.
These investigations require access, so the seller’s agreement will be needed, and anything involving opening up requires the owner’s consent. Allow for specialists’ availability in your timetable and keep your conveyancer informed.
Obtaining quotations
RICS consumer guidance recommends obtaining quotations from at least two experienced contractors before making a legal commitment to buy. Quotations serve two purposes: they indicate what the work is likely to cost, and they provide an objective basis for any discussion with the seller. Ask each contractor to price the same scope of work, based on the surveyor’s findings, so that the figures can be compared. Where a contractor offers a free inspection and also sells the remedy, particularly for damp, it may be prudent to obtain an independent diagnosis first.
Your options
Renegotiating the price
Government guidance on making an offer explains that an offer made “subject to contract” can be renegotiated, for example if a survey finds a problem, and that a buyer may wish to share the relevant part of the survey with the seller’s legal team. It also cautions that renegotiation should only take place when justified, and that attempts to renegotiate as a sale nears completion may cause delays and could risk the sale falling through.
A request supported by quotations and focused on significant defects is more likely to be taken seriously than one based on routine maintenance. Bear in mind that the survey report is prepared for your use, and the surveyor does not accept liability to others who rely on it.
Asking the seller to carry out repairs
Alternatively, you may ask the seller to carry out or pay for the repairs before completion. The disadvantage is that you have limited control over how the work is done. If this route is agreed, ask for:
- details of the contractor and the agreed scope of work
- any certificates, guarantees or building regulations sign-off
- the opportunity for the work to be inspected before you commit
Any agreement about repairs should be properly recorded, which is a matter for your conveyancer.
Retentions
In some cases, a mortgage lender may hold back part of the mortgage advance until specified repairs have been completed. This is commonly referred to as a retention. Whether a retention applies, and on what conditions it is released, is a matter for the lender, and your mortgage adviser can explain the implications. Buyers sometimes also ask whether part of the purchase price could be held back until agreed works are completed. Whether any arrangement of that kind is possible or appropriate is a legal question for your conveyancer to advise on before anything is agreed with the seller.
When to walk away
Withdrawing is sometimes the right decision. It may be appropriate to consider it where:
- the cost of repairs is beyond your budget, even after renegotiation
- the cause of a serious defect cannot be established before exchange
- the seller will not permit further investigation or will not negotiate
- a defect may affect your ability to obtain insurance or a mortgage on acceptable terms
- the works would involve more disruption than you are prepared to accept
The government’s How to buy a home guide notes that pulling out after an offer is accepted causes delays and extra costs, and that withdrawing after exchange may mean losing your deposit and paying compensation to the seller. This is why decisions should be made before exchange.
Working with your conveyancer
The surveyor does not act as a legal adviser and does not comment on legal documents. Your solicitor or conveyancer is the appropriate person to raise enquiries with the seller’s solicitor, obtain the documents the surveyor has flagged, advise on any revised price, repair or retention arrangement, and confirm when it is safe to exchange. Share the relevant sections of your report with them as early as possible.
How Lansdown Associates can help
Our RICS Chartered Surveyors are happy to talk through the findings of a report we have prepared, explain the probable causes of defects and advise on who is best placed to carry out further investigations. Where damp is the concern, our independent damp survey provides an impartial diagnosis, and we can carry out a follow-up inspection once repairs are complete. If you have not yet chosen a survey, our guide to the Level 2 vs Level 3 survey explains which is appropriate, and our checklist on what to look for when buying a house covers the viewing stage.
Post-survey services
Where a survey has raised concerns before exchange, our RICS Chartered Surveyors can also provide:
- Re-inspection of the seller’s repairs: an inspection of work the seller has carried out before exchange, to assess whether the defect appears to have been properly addressed.
- Specific-issue reports: a focused report on a particular defect, including one identified in a survey prepared by another firm.
- Repair cost estimates: estimated costs for the remedial work, to support a renegotiation with the seller.
A cost estimate is not a contractor’s quotation, and written quotations remain advisable before you make a legal commitment. The scope and fee for each service are confirmed in writing before we start, and we provide a free quotation.
Frequently asked questions
Can I renegotiate after a survey?
In England and Wales, an offer is not legally binding until exchange, so renegotiation is possible where a survey identifies significant issues, ideally supported by written quotations.
Does the seller have to fix the problems?
A seller is not obliged to carry out repairs or reduce the price, although they may be prepared to consider a reasonable, evidenced request. Your conveyancer can advise on your position.
What if the surveyor could not inspect part of the property?
The report will mark the element NI and explain the limitation. If the surveyor is concerned, the report will say what further investigation is needed. It may be possible to ask the seller to provide access so the area can be inspected before exchange.
Is a mortgage valuation enough to identify problems?
No. Government guidance makes clear that a mortgage valuation is not the same as a home survey and does not protect you if something goes wrong with the property.
Speak to a chartered surveyor
For help with a report or a further investigation, call 0151 374 0905 or email office@lansdownassociates.co.uk (Monday to Friday, 09:00 to 17:00).
