To discuss the Home Information Pack (HIP), and how it is now necessary to have one when you are selling your property ring us on 01482 861635. You can order over the phone, by e-mail, or by asking your estate agent to order one from us.
Summary
The Government has introduced legislation that requires sellers of residential properties in England and Wales to produce a Home Information Pack (HIP) before marketing homes for sale, and to make a copy of that pack available to prospective buyers on request. The pack must include standard documents and information for prospective buyers. We are able to produce such a pack in advance of any requirement to do so, as an aid to selling a property.
Background
The Government is committed to make it easier for people buying and selling homes in England and Wales. From 1st June 2007 a new pack, known as the Home Information Pack (HIP), has been provided by the seller of a property to potential buyers. The introduction of the Home Information Pack (HIP) is a key part of a package of measures to reform the home buying and selling process.
What was perceived to be wrong with the previous process?
Under the previous home buying process, most of the information required by buyers about a property only became available after an offer had been made and accepted. This meant that problems with the property sometimes came to light only after several weeks, by which time significant costs in legal fees may have been incurred, as well as searches, surveys, etc. This caused the terms to be renegotiated, delay exchange of contracts and even resulted in some transactions failing altogether. It was felt that delays in the previous system encouraged problems and that providing key information up front in the Home Information Pack now makse the process more efficient, transparent and consumer friendly.
What does the Home Information Pack contain?
Through the introduction of HIPs, the Government aims to take the stress out of buying and selling a home by providing key information upfront. Every Pack includes an Energy Performance Certificate which, like fridges will provide A - G ratings on the energy efficiency of a home, plus advice on how to make further energy savings. The Pack also includes information such as searches and other legal documents. A Home Condition Report giving details on the condition of a property can also be included in the Packs on a voluntary basis.
The Home Information Pack Regulations 2006 set out provisions on the “required” and “authorised” content of the Pack. Required documents must be included in the pack where appropriate and authorised documents may be included at the seller’s discretion.
The required documents are:
• An index (i.e. a list of the contents of the Pack)
• A sale statement (summarising terms of sale)
• Evidence of title
• Standard searches (i.e. local authority enquiries and a
drainage and water search)
• An Energy Performance Certificate
• Where appropriate, commonhold information
including a copy of the commonhold community
statement)
• Where appropriate, leasehold information (including
a copy of the lease, information on service charges
and insurance)
• Where appropriate, a New Homes Warranty
• Where appropriate, a report on a home that is not
physically complete
The authorised documents include:
• A Home Condition Report (optional)
• Guarantees and warranties
• Other searches
Note: An ‘authorised’ document means that sellers can use them to top up their Packs voluntarily to include additional material where they judge that to be of interest to prospective buyers. Although the Government has suggested the inclusion of a Home Condition Report on a voluntary basis, it strongly believes that these are likely to prove valuable to both sellers and buyers, and is working with the industry to ensure that there is active take up.
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