You have found your dream home, had an offer accepted and started the conveyancing process. Then the house survey arrives and identifies damp, movement, roof problems or another issue you were not expecting. This does not automatically mean you should pull out of the purchase.
Problems identified in a property survey are common, particularly with older homes. What matters is understanding how serious the problem is, how much it could cost to put right and whether you still want to buy the property at the agreed price.
At AFG Law, our Residential Property solicitors can advise you on the legal issues that arise during your purchase and deal with the conveyancing if your survey results lead to further enquiries or changes to the transaction.
What problems can a house survey find?
The amount of detail you receive will depend on the type of survey you have commissioned. A more detailed building survey, for example, can be useful when buying an older, unusual or heavily altered property.
A survey might identify:
- Damp or timber problems.
- Roof defects.
- Cracking or movement.
- Drainage problems.
- Defective windows.
- Problems with extensions or alterations.
- Issues with insulation or ventilation.
- Electrical or heating concerns.
- Potential structural issues.
Many surveyors use a traffic light system or condition ratings to help buyers understand which matters require urgent attention, and which are less serious. The important thing is not to panic simply because the survey highlights several issues. Some may be normal maintenance items. Others deserve further investigation before you commit to the purchase.
What should I do when a survey reveals problems?
Read the survey report carefully and identify which problems the surveyor considers most serious. If anything is unclear, speak to the surveyor. Ask what the problem means, how urgent it is and what further investigation they recommend.
Where the survey uncovers a specialist issue, you may need another professional to inspect it. For example, suspected movement or major cracking could require advice from a structural engineer. Damp, roofing or drainage problems might require quotations from suitable contractors.
The aim is to understand the problem and likely cost to fix it before deciding what to do next.
Can I ask the seller to fix the problem?
Yes. If the survey results identify a significant problem, one option is to ask the seller to carry out the necessary work before completion. However, the seller does not have to agree.
You should also think carefully about whether you actually want the seller to fix the problem. You may have more control over the standard of the work if you arrange the repairs yourself after completion.
For this reason, buyers often prefer to obtain quotations and use the expected costs of repairs when deciding whether to renegotiate.
Can I renegotiate the price after a bad survey?
Yes. In England and Wales, the purchase price is not legally fixed simply because your offer has been accepted. Until contracts are exchanged, you can ask to renegotiate the price.
For example, if you agreed to pay £300,000 but the building survey identifies roof repairs likely to cost £15,000. You could approach the seller and ask for a reduction. Usually, this communication will initially take place through the estate agent.
A survey does not automatically entitle you to a reduction. The seller can reject your proposal, agree to part of it or decide they would rather put the property back on the market. Your decision then becomes whether you are still prepared to proceed at the price the seller will accept.
Should I pull out if the survey finds structural issues?
Not necessarily. A serious survey finding should be investigated properly before you make a decision.
If a structural engineer confirms significant structural issues, you need to understand the likely repairs, cost and effect on the property. You should also consider your mortgage. A lender may have concerns about serious defects, particularly if they affect the property’s value or suitability as security.
For some buyers, the cost and uncertainty will make walking away the right choice. Others may still proceed if the problem can be repaired and the price reflects the work required. The advantage of having the survey before exchange is that you can make that decision before becoming legally committed.
Should I tell my conveyancing solicitor about the survey?
Yes you should inform your solicitor, particularly if the survey report raises matters that could have a legal or conveyancing element. A surveyor looks primarily at the physical condition of the property. Your conveyancer investigates its legal title and the documents relating to the sale. Sometimes the two overlap.
For example, your survey might identify an extension, loft conversion or other alteration. Your conveyancer can then check the information available concerning planning permission, Building Regulations approval and any relevant property documentation.
A survey could also identify apparent boundary features, access arrangements or other matters that need to be compared with the title.
You should send the relevant parts of your survey to your solicitor rather than assuming they will automatically receive a copy.
What if the survey finds an extension without paperwork?
This is a good example of why survey findings should sometimes be raised with your conveyancer. If an extension or structural alteration is identified, your solicitor can investigate the available paperwork and raise appropriate enquiries with the seller’s solicitor.
The legal position will depend on what work was carried out, when it was completed and what permissions or approvals were required. Do not contact the council or take other action without first discussing the position with your conveyancer, as this can sometimes affect the options available for dealing with missing documentation.
Can I pull out of the purchase after the survey?
If you are buying a property in England and Wales and contracts have not yet been exchanged, you can generally withdraw from the transaction. You do not have to buy a property simply because your offer was accepted or you have spent money on searches, legal work and a survey. You will, however, normally have to bear the costs you have already incurred.
Once contracts have been exchanged, the position changes significantly. The purchase becomes legally binding and withdrawing can have serious financial consequences. This is why surveys should be arranged early enough for the results to be considered before exchange.
Don’t ignore problems because you love the house
Finding a property you want to buy can make it tempting to dismiss anything that threatens the transaction. A survey revealing issues does not necessarily mean the house is a bad purchase. Equally, you should not ignore expensive defects simply because you have already pictured yourself living there.
You should first find out what the problem is. Following this, you can obtain specialist advice or quotations where needed. You should then work out the likely costs of repairs and decide whether the purchase price still makes sense.
If it does not, you can negotiate or reconsider the purchase before you become legally committed.
How AFG Law can help
At AFG Law, our Residential Property team can assist you throughout the conveyancing process when buying a property.
If your house survey identifies an issue with a possible legal implication, we can review the relevant title and property documents, raise appropriate enquiries with the seller’s solicitor and explain what the legal paperwork shows.
Where you agree a revised purchase price following the survey, we can also deal with the necessary changes as part of the conveyancing process and liaise with your lender where required.
A worrying survey does not always mean the end of your purchase. What matters is finding out what you are dealing with before you exchange contracts.
Contact AFG Law’s Residential Property team for advice about the legal aspects of buying your next home.