The “buyer beware” principle

Many buyers assume their mortgage lender’s valuation report doubles as a survey and will flag up any concerns. Regrettably, this is not the case and the lender’s valuation report is generally for the benefit of the mortgage lender only and therefore cannot be relied upon by a buyer, even though they meet the cost of it, and it will only confirm whether the property is a reasonable security for the lending purposes.

As there is no duty on the Seller to disclose any defects in the physical condition of the property it is recommended that buyers have a full private structural survey carried out prior to exchange of contracts.  Exchange of contracts makes the matter legally binding on all parties and the buyer is deemed to accept the property in the state of repair and condition at that date. If any defects are highlighted in the survey report this can be invaluable in any price negotiations and will help the buyer to avoid any unpleasant and costly surprises after completion.