The RICS HOMEBUYER Survey and Valuation Service (HSV) Report Form and accompanying Documentation (Choosing between Surveys, Description of the HOMEBUYER Service, Standard Terms of Engagement and Annex: Leasehold Properties) were last amended in 2005.

The 2005 Report Form and Documentation replaced the 1997 versions with effect from 31st January 2005.

Included in this article are notes on the relevant changes to the 2005 edition of the HSV Practice Notes, and commentary on the history and development of the HSV.

This article provides only a brief summary of the amendments where material changes have been made. Surveyors are recommended to read all the material before using the 2005 documents to ensure that all the changes that have been made are understood and applied.

Changes to the Report Form
The format of the printed Report Form has not changed, but various alterations have been made to the content. There follows a summary of the alterations together with, where relevant, a description of where the Practice Notes have been amended.

A. Introduction

• The Objective and Overall Opinion have been amended to cover Scottish law. 

B. The Property & Location

• The commentary is extended to include reference to any limitation on the Inspection.
• The ‘Please note’ comment which was in the sample forms, but not the actual forms, now appears on the printed form in a box.
• In the Practice Notes there is a change to the format of the checklist accompanying this section, but no changes in the content, except under ‘Environment’ where the extent of enquiry is clarified. It should be noted that detailed information on environmental factors is not included. Environmental advice is in the Red Book, UKGN 1.

 C. The Building

• The side headings to the form have been amended to distinguish between ‘Dampness’ and ‘Condensation and Insulation’. Similarly, in the Practice Notes, the checklist has been amended to indicate the matters to be considered under the revised headings.
• In the Practice Notes checklist, reference is made to the SAP rating, if known. 

 C. The Building (continued)

• The side heading now includes Decoration with External Joinery.
• In the checklist in the Practice Notes reference is made to the possible presence of asbestos. 

C. The Building (continued)

• The side heading now includes Decoration with Internal Joinery.
• The printed paragraph has been amended to replace the comment about damage to internal decorations with a broader comment that furnishings may conceal defects.

D. The Services & Site

• No change to the form.
• In the Practice Notes the checklist now includes reference to asbestos and a statement that the services must not be turned on or off. The latter point being consistent with the change in the comment on B2 of the Description of the HOMEBUYER Service (DHS). 

E. Legal & other matters

• The advice on ACTION is now included on the form in a box, and therefore will not need that reference in the narrative.
  
• In the Practice Notes under ‘Listed Buildings/Conservation Areas’ the commentary incorporates the current material, but the proviso that the Surveyor may give advice, if competent to do so, on repair of such properties has been removed. 

• F1 the side note has been reduced to two headings: Urgent Matters and Further Investigation.
  
• In the printed commentary the words ‘before you exchange contracts’ have been removed. This enables the Surveyor to comment within the framework of English and Scottish law as necessary.
  
• The advice on ACTION is now included on the form in a box and therefore will not need that reference in the narrative.
• In the Practice Notes the comment on Further Investigation is new.
  
• In the Practice Notes under F1 various items have been clarified, with new material being in the the style of the introductory words and comment on the liability disclaimer.
  
• In the Practice Notes F2 has been clarified, but there are no material changes.
  
• In the Practice Notes F3 has been clarified and new sample paragraphs given. 

G. Valuation

• The Valuation is confirmed as Market Value. The reference to Assumptions no longer refers to ‘Standard Assumptions’ but to ‘various Assumptions are made’.
  
• The guidance in the Practice Notes no longer includes details of the Assumptions, but provides that the Assumptions made in the RICS Mortgage Specification (Red Book, UKA 3.2) will be made. Similarly the Red Book guidance on Special Assumptions is incorporated.
  
• The Surveyor is permitted to provide a digital signature where an electronic version of the Report is provided.
  

Changes to the 2005 HSV Documentation
The format of Documentation accompanying the Report Form has not changed, but various alterations have been made to the content. There follows a summary of the alterations.

• Various amendments have been made to ensure that the comments on the purchase procedures apply to Scotland, or additional comment is made.
• The comment on Building Surveys has been strengthened to refer to such a survey as a ‘bespoke service’.
• The comment on HSV now includes a reference to ‘reinstatement cost assessment’.
• The comment on ‘The concise report’, last paragraph, is amended to read ‘comment on any other matters judged ...’.
• The comment ‘Where the Client has a particular concern’ has been clarified and extended to confirm that extra services are not part of the Service.
• The comment ‘Where the Client should take some action’ has been clarified.
• In the table, two items under Building Survey have been extended.

Description of the HOMEBUYER Service

• Various amendments have been made to ensure that comments on the purchase procedures apply to Scotland, or additional comment is made.
• In C2 the reference to ‘safety’ has been removed.
• In D2 the full definition of Market Value is now given.
• In D2 the reference to ‘Standard Assumptions’ has been amended to ‘Assumptions’.
• D2 has been extended to include a more detailed reference to the Assumptions made where the Property is a flat.
• In the Practice Notes a section ‘Commentary on particular elements of the DHS’ is compiled from various sources, but attention is drawn to the proviso under B2 which refers to turning on or off the services. It also notes that under B3 the list of equipment has been extended.

Standards Terms of Engagement

• Now includes a reference to the Surveyor’s complaints handling procedure.
• Item 3 has been amended to reflect Scottish practice.

Annexe: Leasehold Properties

• The opening paragraph recognises that in Scotland, flats are not normally leasehold.
• The list of questions has been given subheadings.

The Practice Notes 2005
The Practice Notes describe the professional obligations incumbent on all Surveyors undertaking a HSV Report. In addition there are precise descriptions of how to complete a HSV correctly.

For convenience, in Parts B and C of the Practice Notes, the Documentation and the Report Form are reproduced with the descriptive material and checklists relating to the Report Form printed on the facing page. (Note that Section A has no descriptive material or checklist).

The 2005 Practice Notes are set out as follows:

Part A - The Practice Notes

1. Professional Obligations
2. Requirements and Scope of the HSV Service
3. The Contract
4. Compiling the Report - Commentary and Guidance

Part B - The Documentation

1. Choosing Between Surveys
2. Description of the HOMEBUYER Service and Terms of Engagement
3. Commentary on particular elements of the DHS
4. Annex: Leasehold Properties

Part C - The Report Form

Most pages of the Report Form are accompanied by guidance on their completion.

Part D - Appendices

• Appendix A: Definitions of HSV Key Terms
  Appendix B: The HSV Service: Checklist of Professional Obligations
  Appendix C: The Contract: Checklist for each commission
  Appendix D: HOMEBUYER Terminology
  Appendix E: The HOMEBUYER Licensing Scheme

The Documentation and Report Form are published separately for use by the Surveyor.

Summary of changes in the 2005 Practice Notes
The Practice Notes contain all the relevant material from the original PS 11 and PSA 12 with its appendices (see Background below). The content is based on the original and there have not been any significant changes to the requirements.

The material appears in various places in the original PS and rather than set out a detailed comparison, the following comments highlight where material changes have been made:

• Para 1.1 New material which sets the scene.
• Para 1.2 The Surveyor’s responsibility is stated in clearer terms.
• Para 1.3 The original reference to Building Surveys has been removed.
• Para 1.5 Reinforces the need for the Client to be advised of, and understand, the Service to be provided.
• Para 1.6 Explains HSV Licence.
• Para 2.1 Advises that variations to reflect Scottish law are referred to in context.
• Para 3.2 Clarifies matters to be confirmed to the Client additional to those in the Contract letter.
• Para 3.3 Requires the Surveyor to include with the Terms of Engagement a form of Client’s‘Instructions to proceed’.
• Para 4.3 ‘Significant matters’ are clarified.
• Para 4.4. ‘Urgent matters’ are clarified.
• Para 4.6 Advice on the ‘Overall Opinion’ has been clarified and the number of sample paragraphs reduced. 

Appendices
The Appendices are new and provide a quick reference to the definitions used in the forms; professional obligations; a checklist on the preparation of the Contract; advice on HOMEBUYER terminology and details of the Licence. 

Background to the HSV
The RICS Homebuyer Survey and Valuation Service (HSV) was introduced in 1997 as Practice Statement 11 in the RICS Appraisal and Valuation Manual (The Red Book). The Practice Statement, the appendix and annexes were reproduced as HSV Practice Notes and the associated documents were published separately. In addition a separate set of all the documents was published for use in Scotland. The 5th Edition of the Red Book refers to the HSV Practice Notes but does not include any of the documentation.

A working group was set up to look at the HSV Service in detail and produce recommendations for revised Practice Notes which would rationalise all the existing documentation into one publication. The HSV Practice Notes 2005 are the result. 

No changes have been made to the format of the HSV Documentation or the Report Form. However, the Practice Notes have been rewritten, without altering the principles of HSV, to make them clearer, and various technical alterations have been made in the Documentation and Report Form.