Terms Conditions

CONDITIONS OF ENGAGEMENT

We refer to your instructions, requiring us to carry out a limited Valuation Report for Mortgage Purposes on the above property. We are obliged by the Royal Institution of Chartered Surveyors to seek formal confirmation from you that the scope and extent of the inspection which we shall make, is in accordance with your requirements. A summary of the Conditions of Engagement upon which this valuation will be prepared in provided below.

It is also a requirement of the Royal Institution of Chartered Surveyors that we should seek formal confirmation from you before accepting your instructions to proceed with the inspection. We are aware, however, that these requirements are generally laid down to comply with practices South of the Border where the method of purchasing a property is substantially different. For our part we will assume acceptance of the undernoted Conditions of Engagement unless advised by you to the contrary. We would also confirm that we operate a Complaints Handling Procedure and that this is available to you on request in the unlikely event of a dispute.

Conditions of Engagement

1) The property will be inspected by a qualified Surveyors for the purposes of advising upon its suitability for Mortgage Purposes. However, a final decision on whether a mortgage will be granted rests with your chosen lending institution which may impose retentions in line with their lending criteria. The date of valuation will be the date of inspection.

2) The degree of inspection will be in accordance with the current guidelines for Mortgage Valuation inspections issued by the Royal Institution of Chartered Surveyors. If there is any doubt as to the scope and extent of the inspection (it is not a survey), we should be contracted prior to the submission of a binding offer to purchase and we shall be happy to provide further information. In the meantime and for the avoidance of doubt, we confirm that sub-floor areas will not be examined and roof voids will only be inspected from the access hatch without entering the roof space. Common roof voids in buildings such as tenements will not be inspected. The extent of the property will be inspected from ground level only.

3) It is recognised that a detailed survey of the property is neither required nor instructed. We are specifically not required to inspect those parts of the property which are covered, unexposed or otherwise inaccessible. Carpeting and furnishings will not be removed. As a consequence, we shall, in preparing our valuation and recommendations be entitled to assume that such parts of the property that are outwith the scope of the inspection are free from defect and that there are no conditions in the adjacent properties which could have an adverse effect on the subject property. Unless expressly stated to the contrary we will, in arriving at our opinion of Market Value make the following assumptions:-

a) The property is unaffected by adverse Planning, road or other proposals or any other known proposals to amend, alter or develop any adjacent land or buildings which could have an adverse effect on the subjects under report. We shall be under no obligation to make property enquiries at local authority offices.

b) The property is held on feudal tenure and is not affected by any unusual or onerous title conditions or outgoings, and that a good title can be given.

c) That all alterations to the property have been properly regulated or that they can be regulated at minimal cost and that, where necessary, the superior’s approval has been obtained.

d) We shall value the heritable parts of the property only on the basis that an inspection of those parts of the property which have not been inspected would neither reveal material defects nor cause us to alter the valuation materially.

e) That the services will not be tested and will be assumed to be in a functioning condition conforming to current regulations and that, where electricity, gas, water and drainage are installed, they are a mains facility. In the case of no-mains water and drainage we will assume that these facilities are satisfactory and approved by the appropriate authority.

f) That the property, and the adjoining properties and locality are free from any contamination or any deleterious materials and that no high alumina cement, concrete or calcium chloride additives were used in the construction of the subjects.

g) Market Value (MV) is “the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after property marketing and wherein the parties had each acted knowledgeably, prudently and without compulsion”.

4) Special conditions and assumptions relation to asbestos:-

a) The valuer will not carry out an asbestos inspection, and will not be acting as an asbestos inspector in completing a valuation inspection of properties that may fall within the Control of Asbestos at Workplace Regulations 2002.

b) No enquiry of the duty holder, as defined in the Control of Asbestos in the Workplace Regulations 2002, of the existence of an asbestos register, or of any plan for the management of asbestos will be made.

c) Your Legal Advisor/Conveyancer should confirm the duty holder under these regulations, the availability of an Asbestos Register and the existence and management of any asbestos containing materials.

d) For the purpose of this valuation, we have assumed that there is a duty holder, as defined in the Control of Asbestos in the Workplace Regulations 2002 and that a Register of Asbestos and effective Management Plan is in place, which does not require any immediate expenditure, or pose a significant risk to health, or breach of HSE Regulations.

5) As our client you may undertake to immediately pay our fee which will be confirmed to you prior to undertaking the valuation.

6) It should be noted that we have no vested interest in the outcome of this valuation. Unless otherwise stated we are external Valuers as defined within the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards (Fifth Edition). We strongly recommend that your report be passed to your Solicitors immediate to obtain independent legal advice.

7) Our report is private and confidential to you in the context supplied and no responsibility is accepted to any third party (whether notified to us or not) for neither the whole nor any part of its content. However, in line with the local Scottish practice we reserve the right to make the report available to other parties, and, if requested to their lending institutions.

8) As part of our remit, we may, where we feel qualified and experienced to do so, provide general comment on standard appropriate supplementary documentation, presented to us b y the client’s lender and conveyancer. In the event of a significant amount of documentation being provided to us, an additional fee may be incurred. Any additional fee will be agreed in writing.

9) If the valuation report is received before or at the same time as a letter confirming your instructions and our terms and conditions, we have departed from the requirements of the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards (Fifth Edition). This is due to time restrictions created by the traditional procedures for buying property in Scotland.

A The Service

A1

The HOMEBUYER service comprises:

an Inspection of the Property (Section B below);
a concise Report based on the Inspection (Section C);
the Valuation, which is part of the Report (Section D).

A2

The Surveyor"s main objectives in the HOMEBUYER service are to give Clients considering buying a particular Property the professional advice which will assist them:

to make a reasoned and informed judgement on whether or not to proceed with the purchase;
to assess at what price it would be reasonable to purchase the Property;
to be clear what decisions and actions should be taken before contracts are exchanged, in Scotland to be clear about what decisions and actions should be taken before an offer is concluded.

A3

The HOMEBUYER service therefore covers the generalcondition of the Property and particular features which affect its present value and may affect its future resale. The Report focuses on matters which the Surveyor judges to be urgent and/or significant.

Significant matters are defined as matters which could reasonably be expected in negotiations over price to be reflected in the amountfinally agreed.

B The Inspection

B1

The Inspection is a general surface examination of those parts of the Property which are accessible. Accessible is defined as, visible and readily available for examination from ground and floor levels, without risk of causing damage to the Property or injury to the Surveyor.

Due care is therefore exercised throughout the Inspection regarding safety, practicality and the constraints of being a visitor to the Property (which may be occupied). So furniture, floor coverings and other contents are not
moved or lifted; and no part is forced or laid open to make it accessible.

B2

The services are inspected (except, in the case of flats, for drainage, lifts and security systems), but the Surveyor does not test or assess the efficiency of electrical, gas, plumbing, heating or drainage installations, or compliance with current regulations, or the internal condition of any
chimney, boiler or other flue. Also, the Surveyor does not research the presence (or possible consequences) of contamination by any harmful substance. However, if a problem is suspected in any of these areas, advice is given on what action should be taken.

B3

Where necessary, parts of the Inspection are made from adjoining public property. Equipment such as a dampmeter, binoculars and torch may be used. A ladder is used for hatches and also for flat roofs not more than three metres above ground level. Leisure facilities and non-permanent out buildings (e.g. pools and timber sheds) are noted but not examined.

FLATS: In the case of flats, exterior surfaces of the building containing the Property, as well as its access areas, are examined in order to assess their general condition; roof spaces are inspected if there is a hatch within the flat. In Scotland, communal areas within the building are examined and accessible roof spaces are inspected.

B4

The Surveyor will not carry out an asbestos inspection, and will not be acting as an asbestos inspector in completing an inspection of properties that may fall within the Control of Asbestos in the Worhplace Regulations 2002. In the case of flats is will be assumed that there is a dutyholder, as defined in the Regulations, and that a Register of Asbestos and effective Management Plan is in place, which does not require any immediate expenditure, or pose a significant risk to health. No enquiry of the dutyholder will be made.

C The Report

C1

The Report provides the Surveyor"s opinion of those matters which are urgent and/or significant and need action or evaluation by the Client before contracts are exchanged or an offer to purchase is made. The Report includes the following:

urgent repairs (e.g. gas leak; defective chimney stacks)
- for which the Client should take action advised where appropriate;
significant matters requiring further investigation (e.g. suspected subsidence) - for which the Client should obtain (and may have to pay for) reports and quotations from suitable contractors;
significant (but not urgent) repairs and renewals (e.g. new covering for flat roof before long);
other signijicant considerations (e.g. a potential source of inconvenience) which the Surveyor wishes to draw to the attention of the Client;
matters identified by Inspection (e.g. a possible right of way) which the Client should instruct the Legal Advisers to include in their inquiries.

C2

Matters assessed as not urgent or not significant are outside the scope of the HOMEBUYERS ervice and are generally not reported. However, other matters which may be of concern are reported where the Surveyor judges this to be helpful and constructive. If a part or area normally examined is found to be inaccessible during the Inspection, this is reported; if a problem is suspected, advice is given on what action should be taken.

C3

The Report is in a standard format arranged in the following sequence: Introduction & Overall Opinion; The Property & Location; The Building; The Services & Site;Legal & Other Matters; Summary; Valuation. In the case of leaseholds, the Report is accompanied by a standard Annex called Leasehold Properties.

D The Valuation and Reinstatement Cost

D1

The last section of the Report contains the Surveyor"s opinion both of the Market Value of the Property and of the Reinstatement Cost, as defined below.

D2

"Market Value" is the estimated amount for which a Property should exchange on the date of Valuation between a willing buyer and a willing seller in an arm"s-length transaction after proper marketing where in the parties had each acted knowledgeably, prudently and without compulsion.

In arriving at the opinion of the Market Value, the Surveyor also makes various assumptions covering, for example: vacant possession; tenure and other legal considerations; contamination and hazardous materials; the condition of uninspected parts; the right to use mains services; and the exclusion of curtains, carpets, etc. from the Valuation. (If needed, the Surveyor can provide details.) Any additional assumption, or any found not to apply, is reported.

FLATS: In the case of flats, the following further assumptions are made:

that there are rights of access and exit over all communal roadways, corridors, stairways, etc. and to use the communal grounds, parking areas and other facilities;
that there are no particularly troublesome or unusual legal restrictions;
that there is no current dispute between the occupiers of the flats, or any outstanding claims or lawsuits; and
that the costs of repairs to the building are shared among the tenants (In Scotland the co-proprietors) on
an equitable basis.

D3

"Reinstatement Cost" is an estimate for insurance purposes of the current cost of rebuilding the Property in its present form, unless otherwise stated. This includes the cost of rebuilding the garage, boundary/retaining wall and permanent outbuildings, site clearance and professional fees, but excludes VAT (except on fees).

Standard Terms of Engagement

1 The Service.

The standard HOMEBUYER Survey & Valuation Service ("the Service") laid out in the preceding Description of the HOMEBUYERS ervice ("the Description") applies unless an Addition to the Service is agreed in
writing before the Inspection. (An example of such an Addition is reporting upon parts which are not ordinarily inspected, such as the opening of all windows.)

2 The Surveyor

who provides the Service will be a Member of the Royal Institution of Chartered Surveyors, who is competent to survey, value and report upon the Property which is the subject of these Terms.

3 Before the Inspection.

The Client will inform the Surveyor if there is already an agreed or proposed, price for the Property; and if there are any particular concerns (such as plans for extension) which the Client may have
about the Property.

4 Terms of payment.

The Client agrees to pay the fee and any other charges agreed inwriting.

5 Cancellation.

The Client will be entitled to cancel this contract by notifying the Surveyor"s office at any time before the day of the Inspection. The Surveyor will not proceed with the provision of the Service (and will so report promptly to the Client) if, after arriving at the
Property, he or she concludes:

a) that it is of a type of construction of which he or she has insufficient specialist knowledge to be able to provide the Service satisfactorily; or

b) that it would be in the typical Client"s best interests to be provided with a Building Survey, plus Valuation, rather than the HOMEBUYER Service.

In case of cancellation, the Surveyor will refund any money paid by the Client for the Service, except for expenses reasonably incurred. In the case of cancellation by the Surveyor, the reason will be explained to the
Client.

6 Liability.

The Report provided is solely for the use of the Client and the Client"s professional advisers, and no liability to anyone else is accepted. It may not be provided to anyone else.

7 Complaints Handling Procedure.

A copy of the Surveyor"s complaints handling procedure is available on request.

Please Note: These Standard Terms of Engagement form part of the Contract between the Surveyor and the Client.