What it is
A pre-acquisition survey is the survey stage of technical due diligence on a commercial property. RICS describes technical due diligence as the systematic review and gathering of information about the physical characteristics of a property, followed by an impartial professional assessment and a balanced opinion of its condition. This lets a prospective purchaser, occupier or financier make an informed assessment of the technical risks of the transaction.
RICS uses the term technical due diligence for this work, and notes that building survey, building condition inspection, pre-acquisition survey and vendor survey are also used. It advises that the term structural survey should not be used.
When you need one
- Before exchanging contracts on a freehold or long leasehold purchase.
- Before taking a lease with repairing or reinstatement obligations.
- When a lender or investor wants an independent view of the building.
- When you plan changes of use or refurbishment and need to know the starting condition.
- When there are signs of problems, such as damp, cracking or an ageing roof.
What the surveyor does
The surveyor reviews available information, then inspects the property and records the condition of the structure and fabric, internally and externally. Matters considered typically include significant defects, repair needs, access and whether the building suits your intended use. The aim is to identify issues that could affect value, cost or safety in the short, medium or long term.
The scope is set by your brief. In line with the RICS standard, services such as mechanical and electrical installations, environmental matters and statutory compliance may be dealt with by specialists where needed. The report will say where further investigation is advisable.
Findings can be used in negotiation, for example to seek a price adjustment, a landlord's works or a more limited repairing obligation, and to decide whether to proceed.
What you receive
- A written report on the condition of the building and its main elements.
- Identification of defects and the repairs or investigations recommended.
- Commentary on risks that matter to your decision.
- Photographs and, where agreed, an indication of repair priorities.
Typical process
- Tell us about the property, the deal and your timetable.
- We agree the scope and any specialist input.
- The surveyor inspects and prepares the report.
- You review the findings with the surveyor before you decide how to proceed.
Frequently asked questions
How is it different from a valuation?
A valuation gives an opinion of value or rent. A pre-acquisition survey reports on physical condition and technical risk. Many buyers commission both.
Can it be done while a lease is being negotiated?
Yes, and that is often the best time. Findings can feed into the lease terms, including a Schedule of Condition.
Does it include legal checks?
No. Title, planning and lease terms are reviewed by your solicitor. The surveyor reports on physical condition.
What if the survey finds serious problems?
The report explains the issues and options, such as negotiating the price or terms, requiring repairs, or withdrawing. The decision is yours.
Sources and further reading
- RICS: Technical due diligence of commercial property (professional standard)
- RICS: Technical due diligence services, standard form (PDF)