HOME INFORMATION PACKS the new rules for selling your home
Tim Brooke, partner at Massers, the solicitors in West Bridgford, highlights what you need to know if you are putting your property on the market.
From 1 June 2007, new laws come into effect which mean that before marketing a property for sale you need to prepare a Home Information Pack (HIP) which must be made available for inspection by prospective buyers. Failure to do so amounts to a criminal offence.
The main reasons for introducing HIPs are to hopefully speed up the process of buying and selling houses, and reduce the number of transactions falling through as the prospective buyer will have more information about the property before making an offer.
What is a Home Information Pack (HIP)?
A HIP consists of:
1. An Energy Performance Certificate (EPC) which is produced by an Energy Assessor. This grades a property on matters like insulation and energy efficiency.
2. A copy of the title documents (which will in most cases be held at the Land Registry).
3. The results of searches carried out at the local authority (eg Rushcliffe Borough Council) and the drainage authority (eg Severn Trent Water). The latest regulations state that it is only necessary to show that an application has been made for the searches, and then when the results arrive, they can be added to the basic pack.
4. A seller can provide an optional Home Condition Report which is similar to a survey. This is likely to be expensive, so many may not take up this option. 5. A form setting out further basic details about the property must also be included in the pack but (rather oddly) the form can be left blank until a sale has been agreed.
Who will prepare the HIP and at what cost?
Most estate agents have made arrangements with national companies known as HIP-providers who employ Energy Assessors to prepare the EPC and the basic components of the package. The cost is expected to be upwards of £450.
What happens when an offer to purchase is accepted?
When an offer is accepted, the sellers solicitor will prepare a contract. The seller will complete various forms to accompany the contract. The buyers solicitor will examine the contract pack and the HIP, identify and sort out problems relating to the title and agree the terms of the contract, deal with any mortgage arrangements and protect and advise the buyer on all the complex issues that often arise.
The fact that the information within the HIP is available immediately has obvious advantages. But the HIP in its present form will not deal with ALL the issues that arise in a conveyancing transaction. Sellers may benefit from consulting their local solicitor and identify possible problems which may arise and try to rectify them before a sale is even agreed.
At Massers we offer an efficient professional and friendly service. If youd like to discuss HIPs or any matter relating to moving home, please contact Tim Brooke at our West Bridgford office on 0115 851 1666.
www.massers.co.uk
