Estate agents are integral to the majority residential property transactions. They manage the entire process and understand the perspectives of both the vendor and the buyer, while coordinating with solicitors and other estate agents.
Experienced estate agents anticipate and navigate various issues that may hinder a sale, which could affect both their clients’ interests and their own commissions and reputations. Such issues include missing documents for alterations or extensions, like town planning or building regulations. The absence of landlord consent for structural alterations in leasehold properties, and defective RICS surveys. A proactive agent can foresee these potential challenges, aiding in a smoother sales or purchase transaction.
With regards to structural engineering and property condition at the point of sale, we have practical experience with numerous issues that could benefit both estate agents learning their craft and seasoned professionals seeking a refresher.
Reasons a property might require a Structural Engineer’s Report include:
- Cracks or structural movement
- History of underpinning or insurance claims for subsidence
- Concerns raised by failed surveys, whether mortgage or buyer-related
- Previous alterations without Building Regulations Approval
- Flats with structural changes made without landlord consent
Our helpful suggestions regarding the above points:
a) General points
If it is likely that a buyer will request a Structural Engineer’s Report due to issues such as cracks, movement, or a history of underpinning or unauthorised building work, it is advisable for the seller to proactively obtain this report. Experience shows that a report from a Chartered Structural Engineer, who is well-versed in residential property issues, can be immensely beneficial. This report not only informs the owner about necessary repairs and associated costs but can be openly provided to prospective buyers. It can even be assigned to them as a reliable reference, though this may incur additional fees to cover the changes in the report and additional responsibilities.
b) Cracks, sloping floors, or door issues
If, during a valuation or early viewing, you notice a significant crack near the front door or in any prominent location, do not ignore it. The buyer’s surveyor will undoubtedly spot it and might request a Structural Engineer’s Report to satisfy mortgage application requirements or to reassure the buyer.
c) Previous underpinning or insurance claims for subsidence
If your initial vendor questionnaire or discussions reveal previous underpinning or a subsidence claim, this is likely to raise concerns for both the buyer and their potential mortgage and building insurance providers. Despite these terms often causing alarm, in practice, they may not be problematic. Underpinning was quite commonly carried out prior to the 2000s, often unnecessarily. In fact, an underpinned house is now stronger than it was prior to underpinning and will compare very favourably to similar properties. In our experience, an early report from a seasoned Chartered Structural Engineer can often alleviate concerns for all parties involved.
d) Concerns arising from failed surveys, mortgages, or buyer surveys
Structural Engineers’ Reports are often requested due to issues identified by a surveyor. This could involve a valuation survey required for mortgage purposes, in which case a Structural Engineers’ Report may be necessary. Alternatively, it might stem from a buyer’s Homebuyer or full Building Survey, both of which might suggest obtaining a structural report for the buyer’s reassurance.
As an estate agent, obtaining feedback from the surveyor’s report allows you to recommend a structural report early, expediting the process. If the property is in poor condition, or there are visible cracks and a history of structural movement, anticipating the need for such a report early can facilitate a smoother transaction.
e) Previous alterations without building regulations approval
A common issue arises when prior structural changes have been made without the necessary documentation, such as the approval of plans through Building Regulations and a completion certificate. This scenario often involves loft conversions, extensions, or the removal of walls or chimney breasts.
Estate agents should be aware that structural engineers can conduct a visual inspection, similar to checking a car’s condition. When alterations were completed many years ago, we can generally ascertain that they have endured over time. However, if changes were made recently, it is more difficult to determine their long-term safety and stability, as insufficient time has passed.
During a property sale, structural engineers can only perform a visual inspection and provide a report, as we do not dismantle the building’s fabric or carry out retrospective calculations. Such an in-depth analysis could be arranged by the vendor, but it is time-consuming, costly, and, in our experience, often unnecessary.
f) Flats without landlord consent for structural changes
If any work, such as wall removal, was done without the landlord’s consent, a retrospective assessment can be carried out, similar to the procedure for non-compliance with Building Regulations. Solicitors representing buyers will likely advise obtaining these assessments when consent or compliance is missing, to ensure due diligence and professionalism.
Conclusions
The pivotal role of the Estate Agent positions the profession to anticipate the need for specialists, including Structural Engineers’ Reports. A proactive approach can save considerable time, boost buyer confidence, and maintain transactions that might otherwise collapse due to unforeseen stress.
It is important that the Engineer is a Chartered Structural Engineer (C Eng, MIStructE), not just a partly qualified Graduate Engineer. They should have experience in creating practical sale reports, with concise and quick responses, avoiding lengthy investigations or testing.
If the Estate Agent identifies any deficiencies in consents or documentation, recommending an early Structural Report can prevent future stress during the sale process. We have encountered numerous situations where such reports have reassured buyers, securing the sale for the vendor, as opposed to risking the buyer seeking other properties. Estate Agents must anticipate this need and act proactively. For any uncertainty about the necessity of reports, a call to a local firm of Chartered Structural Engineers can provide guidance.
