Launching the new RICS Condition Report

A common historic view held was that people were not prepared to pay for a survey and that they felt was too expensive. In response to this, in 2010 the RICS created a new entry level report called the RICS Condition Report. The report was trialed exclusively by e.surv from November 2010 to April 2011.

Working with one lender who had concerns about the low penetration rate for surveys, and therefore compliance issues with TCF, e.surv developed a contact programme. Every mortgage applicant who had opted for a mortgage valuation at the point of sale was contacted, and e.surv provided them with a general introduction to the different surveying report options available to them which could be undertaken at the same time as their lender's mortgage valuation.

Section 4.4 of The CML Lender Handbook warns borrowers that they should not rely on the Lender's valuation when decided whether to proceed with a purchase, and encourages them to seek independent advice on the condition of the property. The BSA offers advice to mortgage applicants, reminding them that the purpose of a survey is to provide information on the condition of the property, information that they will not otherwise receive by wrongly relying on the Lender's valuation.

The FSA's Treating Customers Fairly Principles are clear in their guidance to Lenders, insisting that services sold are designed to meet the needs of customers and are targeted accordingly, that customers are kept appropriately informed before, during and after the point of sale, and above all else that where consumers receive advice it is suitable and takes into account their individual circumstances.

e.surv's trial was undertaken with three thoughts in mind.1) to help educate the homebuying public around the differences between a survey and valuation, 2) to help explain the importance of receiving independent advice and 3) the most cost-effective and suitable options available. Primarily our approach focused on protecting consumers from hidden surprises that may mean last minute negotiations or worse, uncovering costly disasters after moving in.