The Home Condition Report (HCR) is an objective mid-level report on residential property. Produced on completion of a methodical inspection and carried out to new standards, it reports on the construction, condition and defects of a property. The seller, buyer and lenders can rely upon the report. It is commissioned by the seller.

The report is written in plain English with everyday words and phrases. It is electronically generated in a standard format.

An HCR is divided into 8 sections, A to H. A condition rating for each element is applied to the external and internal elements of the building.

Section A: - Explains the report content and extent of inspection. Defines condition ratings.

Section B: -Provides information about the property. Summarizes condition ratings applied to the property. Provides insurance reinstatement costs.

Section C: -Solicitor/ Conveyancer matters.

Section D: - External elements- Chimneys, roof coverings, gutters, walls, windows, cladding and external decoration.

Section E: - Roof structure, ceilings, internal walls, floors, built in fitments, decorations & internal woodwork.

Section F: - Gas, electricity, heating, water and drainage.

Section G: - Grounds and outbuildings. 

Section H: - Energy performance Certificate

The standard terms of engagement provide further detail of the product and service provided. 

The HCR is an authorized document for the inclusion in a Home Information Pack.  The report is not mandatory but the advantages of a seller obtaining a report are compelling.

Advantages of the Home Condition Report are- 

·         The report gives better information upon which to base a marketing strategy.

·         The timing of the report allows for further investigations during marketing, to avoid delays after offer acceptance.

·         The evidence of repairs can be directly linked to the report’s findings.

·         The report shows the agent and potential buyers that the sellers are serious, not just kite flyers.

·         The report demonstrates that agents and sellers are not trying to hide anything.

·         The provision of a report by the seller will delight the potential buyer, who will be more inclined to the property.

·         The existence of a report will ease and speed up mortgage applications.

·         The report reduces the potential for sales falling through or difficult renegotiations.

·         The process between offer acceptance and exchange of contracts is speeded up.

·         A report impresses potential clients and shows progressive thinking.

Importantly!

The cost of an HCR need not be borne up front by the seller.

The EPC is an integral part of the HCR. It is very cost effective to commission an HCR in lieu of the mandatory EPC at little additional cost.