Seller Surveys: Can Buyers Rely on Them?

Seller surveys are becoming increasingly prominent in the property market. The idea is simple: rather than waiting for a purchaser to arrange a survey after agreeing a sale, the seller commissions one in advance and makes it available to prospective buyers.

In principle, this can be an excellent idea. A good seller survey can identify significant defects earlier, give buyers more information before committing to a purchase and potentially reduce delays, renegotiations and failed transactions.

However, great care should be taken before deciding that a seller's survey removes the need for a purchaser to obtain their own survey.

The important question is not simply whether the property has already been surveyed, but what type of survey was undertaken, what was its scope, whether it was appropriate for the property and whether the purchaser can rely upon it.

Is the Survey Suitable for the Property?

This is perhaps the most important consideration.

A relatively modern, conventionally constructed property in reasonable condition may be suitable for a less extensive survey. However, a Level 3 Building Survey will normally be appropriate for properties built before approximately 1930, as well as those which are large, complex, substantially extended or altered, traditionally constructed or in poor condition.

Many seller survey products currently being introduced to the market fall below this level of inspection.

For an older or complex property, simply identifying visible defects is not enough. The surveyor needs to understand how the building was constructed, assess the likely causes and significance of defects and advise on appropriate methods of repair and future maintenance.

If a limited seller survey has been carried out on this type of property, a purchaser may therefore still be well advised to commission their own Level 3 Building Survey.

A Level 3 Building Survey does not simply provide a longer list of defects. Its purpose is to provide a more comprehensive understanding of the building, the significance and likely causes of defects, and the appropriate approach to repair and future maintenance.

A Limited Seller Survey Can Be a False Economy

This is equally important for sellers.

If you own a Victorian house, a substantially altered property or another building for which a Level 3 Building Survey would normally be appropriate, commissioning a cheaper and more limited seller survey may not achieve the intended purpose.

A prudent buyer may still commission their own Level 3 survey because the seller's report does not provide sufficient information or because they cannot formally rely upon it.

The result is two surveys rather than one.

For seller surveys to genuinely improve the purchasing process, the survey provided at the outset needs to be appropriate for the property.

Can You Rely on a Survey Commissioned by the Seller?

The fact that a survey was commissioned by the seller does not automatically make it unreliable. A professional surveyor should provide impartial advice regardless of who is paying their fee.

However, purchasers should establish:

• what level of survey was undertaken;

• the scope and limitations of the inspection;

• who carried it out and their relevant qualifications and experience;

• when the inspection took place;

• whether significant areas were inaccessible; and

• importantly, whether the purchaser is formally entitled to rely upon the report.

A report prepared for a third party should not automatically be treated as equivalent to a survey that you have personally commissioned.

There is therefore an important distinction between receiving a report commissioned by somebody else and instructing your own survey. The purchaser did not select the surveyor, determine the scope of the inspection or agree the original terms of engagement, and these factors should be considered carefully before deciding to rely upon a third-party report.

Period Properties Require Experience and Professional Judgement

This issue becomes particularly important with period and traditionally constructed properties.

The best approach to repairing and maintaining an older building is often a conservative, light-touch approach. This does not mean ignoring defects. It means understanding which defects genuinely require intervention and avoiding unnecessary or inappropriate work.

For example, cracking in an older property does not automatically indicate progressive structural movement. Dampness should not be diagnosed from moisture meter readings alone. Old roof structures do not necessarily require wholesale replacement simply because they do not meet modern construction standards.

Traditional buildings also frequently rely upon materials such as lime mortar and plaster which behave differently from modern construction.

Without appropriate experience, surveyors and contractors can recommend unnecessarily extensive or inappropriate remedial works. This can result in sound historic fabric being unnecessarily removed or replaced, inappropriate modern materials being introduced and owners or purchasers incurring substantial costs for work which may not have been necessary in the first place.

This is why the experience of the surveyor can be just as important as the name of the survey product being purchased.

Seller Surveys Are a Good Idea – If They Are Done Properly

We support the principle of seller surveys. Providing purchasers with good-quality information earlier in the transaction has the potential to reduce uncertainty and help sales progress more smoothly.

However, there is currently a significant commercial drive to introduce seller survey products, and purchasers should be cautious about assuming that all of these reports provide the same level of protection.

Property surveys are not a one-size-fits-all product.

For a straightforward modern property, a more limited survey may be perfectly appropriate. For a pre-1930, traditionally constructed, substantially altered, large, complex or poorly maintained property, a comprehensive Level 3 Building Survey will normally be the appropriate choice.

If a seller commissions a limited survey where a Level 3 survey would ordinarily be recommended, there is a strong possibility that the eventual purchaser will still obtain their own survey. In those circumstances, the seller's original report may simply become an additional cost rather than removing duplication from the transaction.

Do I Need My Own Survey If the Seller Has One?

Not necessarily.

Before making that decision, consider three things:

Is the level of survey appropriate for the property?

Does the surveyor have appropriate experience with that age and type of building?

Are you formally entitled to rely upon the report?

If the answer to any of these questions is unclear, obtaining independent advice before relying upon the seller's report would be sensible.

Level 3 Building Surveys for Buyers and Sellers

South East Surveyors provides Level 3 Building Surveys for both purchasers and sellers throughout Brighton & Hove, Sussex and the surrounding areas, with particular experience in period, traditional and unusual properties.

Our surveys focus not simply on identifying defects, but on explaining their likely causes and significance and recommending appropriate, proportionate methods of repair.

If you are a seller considering obtaining a survey before marketing, or a buyer who has been provided with an existing seller survey and is unsure whether it is sufficient, please contact us to discuss the property and the most appropriate way forward.