How to read an RICS survey report: The short answer
Start with the 'Overall Opinion' summary to get the big picture. Then, look at the Condition Ratings (1, 2, and 3). Focus your immediate attention on the Condition Rating 3 (red) items, as these are urgent defects that require immediate repair or further investigation before you exchange contracts.
Understanding the Traffic Light System
Whether you have commissioned a Level 2 Home Survey or a Level 3 Building Survey, the report will use the RICS standard 'Traffic Light' Condition Ratings to grade the severity of defects:
- Condition Rating 1 (Green): No repair is currently needed. The property must be maintained in the normal way.
- Condition Rating 2 (Amber): Defects that need repairing or replacing but are not considered to be either serious or urgent. The property must be maintained in the normal way.
- Condition Rating 3 (Red): Defects that are serious and/or need to be repaired, replaced, or investigated urgently. Failure to do so could lead to further damage or safety risks.
Don't Let the Red Ratings Scare You
It is incredibly rare for a property—even a relatively new one—to have zero 'Condition 3' ratings. A red rating simply means action is required.
For example, an older property without a modern RCD consumer unit (fuse box) will automatically receive a Condition 3 rating for electricity due to safety standards. This is a common, easily fixable issue that costs a few hundred pounds, not a reason to abandon the purchase.
Focus on the 'Further Investigations'
If your surveyor has given a Condition 3 rating and recommended 'further investigation' (e.g., a specialist damp and timber report, or a structural engineer's inspection), you must action this before exchanging contracts.
Once you exchange contracts, you are legally bound to buy the property. If you discover severe subsidence after exchange, you are liable for the repair costs.
Using the Report to Renegotiate
Your survey report is a powerful negotiating tool. If the report highlights significant unexpected defects (like a failing roof or extensive damp), you are within your rights to ask the seller to reduce the price by the cost of the repairs, or to fix the issues prior to completion.
We Are Here to Help
At Altura Surveyors, we pride ourselves on writing clear, jargon-free reports. But if you have any questions after reading your report, we are always available to discuss the findings with you over the phone.
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