Do cash house buyers need a survey and is it mandatory?

Every year, around 40% of house surveys uncover issues, whether minor or major. This means there’s a 2 in 5 chance that the property you're considering may have problems needing attention.

Skipping the survey and search process might seem like a quick win to speed up conveyancing, but could it lead to costly consequences down the road? Likely!

In this article, we’ll cover what a house survey is, whether cash buyers or sellers need one, and the risks of bypassing due diligence. If you’re looking to make a confident, informed purchase, read on to discover why a survey can be a valuable step.

What is a house survey?

A house survey is a professional inspection conducted by a qualified surveyor, designed to uncover potential issues in a house before you commit to buying. This survey provides critical insights into the home’s structure and condition, helping you gauge any repair costs and risks, so you can make an informed decision.

Different types of surveys offer varying levels of detail:

• Level 1 Home Survey (Condition Report): A basic assessment that outlines the property’s general condition and flags any immediate risks or potential legal disputes.

• Level 2 Home Survey (Homebuyer Report): Provides more comprehensive information including potential future repairs or maintenance needs.

• Level 3 Home Survey: The most detailed option, offering an in-depth analysis of the property’s condition with expert advice on defects, necessary repairs and maintenance recommendations. 

To ensure a reliable survey, work with a qualified surveyor registered with a professional body, such as the Royal Institution of Chartered Surveyors (RICS). RICS surveys are trusted assessments for all property types, from flats and studios to houses, bungalows, and other residential options, giving you peace of mind before you purchase.

Do you have to get a survey when selling a house?

In most cases, as the seller, you’re not legally obligated to commission a survey for the buyer. Usually it’s up to the buyer to arrange and pay for any survey they want as part of their due diligence. 

However, there are a few cases where a survey could be beneficial or even expected:

Do I need a survey when buying a house?

If you are buying a house with a mortgage then your lender will require you to get a house survey completed on any house you are considering. If you are buying with cash, then you do not have this obligation and therefore do not need one. 

We would recommend that any buyer, cash or otherwise, always looks to get some level of survey on a house they’re buying, as without this you can never be completely sure on whether or not the property has any issues or the standard the property has been built to.

Is a house survey mandatory?

No, a house survey isn’t mandatory, but it’s strongly recommended. Skipping a survey can leave you vulnerable to unexpected structural issues, like damp, rot or even subsidence, which can result in expensive repairs down the line.

A survey provides valuable insights that help you make a well informed decision about buying the property. Knowing the condition beforehand not only helps you plan for repairs but may also give you leverage to negotiate with the seller – either to address certain issues or to adjust the price.

Even if a house seems flawless, it’s still wise to invest in a survey. Only a qualified surveyor has the expertise to identify potential issues that could otherwise go unnoticed.

Is a house survey a legal requirement?

A house survey is not a legal requirement, but it may be necessary depending on your circumstances. For instance, if you’re buying a home with a mortgage, your lender will usually require a survey to approve financing. This ensures the house’s condition aligns with its value, safeguarding the lender’s investment.

Additionally, if you’re selling an inherited property, a probate survey is usually required to legally grant probate. This survey assesses the house’s market value, an important step in the probate process.

Do cash house buyers need a survey?

When you sell your house to a traditional buyer through the open market, they will always get a survey and search, as the buyer will have a mortgage lender who won’t lend without. However, a cash buyer is someone who doesn’t need a mortgage in order to buy your house and therefore cash buyers aren’t forced by a mortgage lender to get one.

In a lot of circumstances, cash buyers choose not to have a survey as they want to ensure the speediest conveyancing process possible and they tend to be buying a house as a ‘project’, which will mean they will be spending a lot of money to change the property anyway, so won’t need a survey at that moment.

However, this being said, just because a cash buyer doesn’t have a mortgage lender to force a survey and search, doesn’t mean that they don’t want to have a survey done. Surveys can be helpful for cash buyers to:

• Make an informed decision about the maintenance cost involved in your property.

• Find out if there will be any hidden surprises (i.e. Japanese Knotweed or damp).

• Know if your house valuation is accurate.

How do cash buyers speed up the house survey process?

When it comes to surveys, open market cash buyers often improve the process by opting for a basic survey level. This gives them a good insight into the property’s condition without piling on extra time and costs, keeping the sale process smooth and efficient. 

However, if you sell to a cash house buying company, like The Property Buying Company, we take this efficiency even further. With our well-established relationships with surveys, we can arrange priority RICS surveys ensuring fast turnarounds without compromising accuracy. This means you get a quick, reliable assessment that moves the sale forward without delays.

At The Property Buying Company, our panel of expert solicitors, conveyancers and surveyors are strategically located nationwide, allowing us to work quickly and efficiently in various regions across England and Wales. 

While a survey is required for transparency and accuracy, it’s part of our commitment to providing a seamless experience – confirming your home’s value and ensuring it aligns with our initial cash valuation.

What happens if you don’t get a house survey?

Getting a house survey before buying a house is important for peace of mind, as it provides a complete picture of the property’s condition. If the survey reveals no major issues, the sale can move forward confidently. But if the house survey does identify problems, then you have options:

1. Withdraw from the property sale if the issues are too costly or significant.

2. Renegotiate the price to offset repair expenses.

3. Request repairs from the seller before you move in.

Without a survey, you lose the opportunity to uncover hidden issues that could impact your quality of life and finances. Potential red flags that could appear on a house survey include:

• Damp and dry or wet rot.

• Minor or major Subsidence.

• Leaky roof or wall cracks.

• Woodworm or rotten window frames.

• Outdated, dangerous wiring. 

• Asbestos or invasive plants, like Japanese Knotweed.

Any of these issues could require costly repairs, potentially forcing you to relocate temporarily. Plus, when it comes time to sell, a buyer’s survey might reveal these issues, possibly deterring potential buyers.

While some homes may indeed be fine without a survey, the best approach is to learn as much as possible about your future home upfront. This knowledge helps you from unexpected expenses and ensures a more informed buying decision.

How many people buy a house without a survey?

In the UK, a surprising number of property transactions are completed without a formal house survey. Approximately 12% of homebuyers — around 98,000 people each year, choose to skip this step, opting to proceed without the added insight a survey can provide. While bypassing a survey might seem like a way to save time or money, it often comes with hidden risks.

Among the buyers who forgo a survey, about 25% encounter unexpected repair costs after moving in, averaging £3,676. These unforeseen expenses can range from minor fixes to significant structural issues, turning what seemed like a cost-saving decision into a costly oversight.

Do cash house buyers need searches?

While not a legal requirement for cash house buyers, property searches are strongly recommended, as they help uncover any potential issues with the property before you take ownership. These conveyancing checks, usually conducted by a solicitor, provide critical insights into the property’s background and any risks that might affect your investment. 

Here are some of the recommended searches:

• Local authority searches: Investigated development plans in the area, pollution levels, and any planning or building issues that could impact your property.

• Environmental searches: Identified environmental risks like contaminated land, nearby landfill sites, flooding hazards, ground instability, and radon gas.

• Water authority searches: Confirms water sources, drainage systems, and potential impacts on future building projects.

• Land Registry Searches: Verifies that the seller is the legal owner of the property, protecting you from ownership disputes.

• Chancel Repair Search: Checks for liability under old laws that could require the property owner to contribute to church repairs.

• Location Searches: Focus on issues unique to the property’s region such as mining activity or flooding risks.

Even as a cash buyer, these searches can protect you from unexpected challenges and provide peace of mind, ensuring there are no hidden risks tied to the property. 

As one of the largest cash house buyers operating in the UK, The Property Buying Company we do our due diligence and acquire searches and surveys on all properties that we buy. This does not speed down our service, as we have a panel of trusted conveyancers working hard to meet your required timeline.

Can you buy a house without local searches?

If you’re buying a house with cash, you have the option to skip local searches – but this decision comes with significant risks. Without these essential checks, you could face unexpected issues, such as discovering that the person selling the property wasn’t the legal owner. 

In this case, ownership wouldn’t legally transfer to you, and the original owner would still retain their rights, leaving you in a challenging and costly situation. 

Local searches are a critical part of due diligence. They provide vital information about the property and surrounding area, including legal ownership, planning risks and environmental issues. While you may save a little time and money by forgoing these searches, the potential for future legal, financial and ownership troubles makes them a worthwhile investment for most buyers. 

Who applies for searches when buying or selling a house?

Typically, your solicitor or conveyancer handles property searches on your behalf when you’re buying or selling a home. These searches provide valuable insights into any potential issues that could impact the property or its value.

The only exception is if you’re undertaking DIY conveyancing. In this case, you would be responsible for arranging these searches yourself – a task that requires time and attention to detail to ensure thorough due diligence.

Are searches necessary when selling a house?

Well, the good news is that, as the seller, you aren’t obligated to carry out property searches or provide the information these searches reveal unless you are already aware. Typically, it’s the buyer’s responsibility to conduct property searches as part of their conveyancing process, which helps them understand more about the property’s legal standing, any restrictions and environmental factors.

Can sellers skip property searches?

Property searches, such as local authority searches, environmental reports and water and drainage checks are generally geared toward the buyer’s interests. Since buyers want to fully understand the property they’re investing in, they arrange these searches as part of their due diligence. 

Here’s why sellers often don’t bother with them:

• Not a requirement: There’s no legal requirement for sellers to conduct searches, and most buyers expect to handle this aspect of the process through their solicitor.

• Customisable to buyer needs: Buyers may have specific concerns or requirements that influence the types of searches they order. For example, someone with plans to renovate may want additional planning searches, whereas another buyer might only require standard checks.

• Expense savings: Property searches can be a significant expense, with costs usually ranging from £200 to £400. Many sellers prefer to save on these costs, knowing that the buyer will be expected to conduct them anyway. 

When should sellers get property searches done?

While it’s uncommon, in a competitive or buyer’s market, offering to cover the cost of searches or even arranging your own searches upfront can set your house apart. This can add appeal for certain buyers and speed up the sale process, especially when time is of the essence.

By offering upfront search information, you help eliminate some of the usual delays in the conveyancing process, which could help speed up your transaction speed. This can be especially useful if you’re in a time-sensitive sale or have buyers who want to move quickly. 

Something to note however, is that even if you offer searches, some buyers may still want to conduct their own, as searches are usually time sensitive. For example, local planning permissions or environmental reports can change over time, so buyers usually prefer up to date reports handled by their own solicitors. 

That being said, covering the cost of these searches can be a generous gesture, showing flexibility and goodwill that could help smooth negotiations. 

If you sell your house with The Property Buying Company, then we will always cover the cost of surveys and searches, and handle the solicitors for you, offering a completely hassle free, and free selling service.