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Home Information Packs (or HIPs for short) are designed to help the buying/selling process and will contain important information about the property being sold.
For sellers, providing a Pack upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home.
For buyers, the Pack provides essential information about properties they are considering buying.
By providing this information earlier in the sale of a home it is expected that the whole buying/selling process will be speeded up and fewer sales will fail.
When do HIPs start?
Following the roll out
for 3 and 4 bedroom properties earlier in the year, all properties marketed
for sale from 14th December 2007 in England and Wales, will need a Home
Information Pack including a Home Energy Rating. Currently any property
that was already on the market before the relevant commencement date, (i.e.
1st August 2007 for homes with 4 or more bedrooms: 10th September 2007 for
those with 3 or more bedrooms and 14th December 2007 for all properties)
will not need to have a HIP.
What is in a HIP?
The Home Information Pack must include all the documents that are normally required when homes are bought and sold.
Some documents will be compulsory and others optional. The optional documents will add value to prospective buyers in terms of providing additional reassurance.
The compulsory documents are:
- An index (ie. List of contents)
- Energy Performance Certificate
- A sale statement (summarising the terms of the sale)
- Evidence of title
- Standard searches (eg. Local authority enquiries and a drainage and water search)
- Common hold information – if applicable
- Leasehold information – if applicable
The optional documents include:
- A home condition report
- A legal summary
- Other searches relevant to the area
- A home use form
- A home contents form and additional relevant information
Can I put my home on the market without a HIP?
Following the recent Government announcement, the
temporary first time marketing provisions (commissioning a HIP) have been
extended for an additional 5 months to allow full flexibility from 1st
January to 1st June 2008 to ensure continued smooth mplementation of HIPs.
What is an Energy Performance Certificate (EPC)?
EPCs will tell buyers and sellers about the energy efficiency of a house – using A to G ratings like those used to rate fridges and washing machines. It is expected that the EPCs will be attached to the particulars, which estate agents give to potential buyers. EPCs will also make recommendations for improvements that can be made to help cut fuel bills and carbon emissions. The EPC is prepared by Domestic Energy Assessors or Home Inspector who are members of a Government approved scheme.
Do all properties need a HIP?
From 14th December
2007, all properties marketed for sale in England and Wales will need a Home
Information Pack which includes an Energy Rating. At present the following
will not require a HIP.
You do not need a Home Information Pack for:
- Properties where there is no marketing (e.g. a sale to a family
member)
- Non-residential properties
- Season and holiday accommodation
- Mixed sales (e.g. shop with flat)
- Right to buy and similar sales
- Sales of portfolios of properties
- Properties not being sold with completely vacant possession
- Unsafe properties and properties to be demolished
- Properties already on the market and the duty to have a pack
commissioned or provided arises as no cut-off date has yet been set
- New homes built under Part L of the building regulation 2006 (from
April 2008, EPCs will be rolled out for newly built homes as well as cross
commercial property for sale rent or construction. By 2008 all public
buildings will have a display certificate
Failure to comply with the Home Pack Regulations could result in a penalty notice or fine of £200..These duties imposed by the regulations will be enforced by local authority Trading Standards Officers on the party responsible for marketing.
If you are confused about Home Information Packs and how they affect the marketing of your property then please do not hesitate to contact the Storrington Office on 01903 745844, the Billingshurst Office on 01403 786787 or the Pulborough Office on 01798 875197 for detailed advice.
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