Home Information Packs

"Since 1973 my partners and I have been at the forefront of property
transactions across Buckinghamshire.  Today is no exception with 10 offices
across Buckinghamshire and South Oxfordshire.  Although we have specialist
departments dealing with new homes, commercial property, surveys and
valuations and country and equestrian property, selling and letting
residential property remains our core business.  It is for this reason that we
have embraced new legislation and have the expertise to produce Home
Information Packs”.  Christopher J. Pallet FRICS

The government has introduced Home Information Packs (HIPs) on a phased
basis, starting with 4 bedroom properties and larger from August 2007 and
then phasing in 3 bedroom properties from 10th September 2007 and all other
properties from 14th December 2007.

Once HIPs are fully introduced the vast majority of home owners will need to
obtain one before they can market their property.  This is a significant change
to the home buying and selling process, but provided you understand the key features of a HIP, what they are intended to achieve and ensure that you obtain yours from a reputable source, they are not something that should alarm you and hopefully over time, they will actually improve the overall process!

What is a Home Information Pack?

A HIP contains a collection of important documents that are required when houses are bought and sold.  These include various legal searches, land registry documents and an energy performance certificate (EPC), which is intended to tell you and potential buyers how ‘green’ a house is.  These are the compulsory elements for all properties; leasehold properties require additional information and there are various other documents and reports that can be included if you wish (these are explained later).

Why are they being introduced?

The idea behind Home Information Packs is to make the process of buying or selling your house easier and quicker, by providing key documents when the property is first put on the market.  Currently this information is not usually available until after an offer has been made and accepted.  The goal is to deliver a more transparent and efficient process, thereby reducing the number of failed transactions, which currently cost consumers over £350m per year.

The only new document not currently required for conveyancing is the energy performance certificate which is explained later.

What is in a Home Information Pack?

There are two kinds of documents that a HIP may contain; those that are required (mandatory) for all properties and others that are authorised (optional), to be included at the sellers discretion.

Mandatory

The elements in bold will be required before a property can be marketed from 1st January 2008.  The other elements are required within 28 days.

Optional

We can advise you whether you should include any of the optional documents.

Do all residential properties need a HIP?

Apart for the phased start by size of property, the vast majority do.  There are a few exceptions, such as mixed use properties (i.e. a shop and flat) and properties with a sitting tenant.  Again, we can advise you if you do not require a HIP.

What is an Energy Performance Certificate (EPC)?

An EPC will tell buyers and sellers about a home’s energy efficiency, using A to G ratings like those used on appliances such as washing machines and refrigerators.  The certificate will also specifically show, for each individual property, various improvements that could be made to cut fuel bills and carbon emissions, the costs of doing this and how quickly these will be recouped through reduced spending on energy.

The EPC will be prepared by a Domestic Energy Assessor or a Home Inspector, all of whom have been trained and are licensed via a Government Certification Scheme. We employ our own assessors and can produce the EPC quickly and efficiently.

What is a Home Condition Report (HCR)?

A HCR contains information about the physical condition of the property.  It is prepared by a Home Inspector, who can also prepare EPCs.  The HCR provides an objective report on all parts of the property, meaning that potential buyers can understand the condition of the property before making an offer and where repairs are required, the extent and possible cost of these.  If a HCR is included, offers can be made based on the facts about the property and therefore the sale is less likely to fall through or the price be renegotiated.

Should I use a HCR – and what will it cost?

A HCR is a voluntary document and for the average property will cost approximately £200 - £250 on top of the required documents.  Many buyers and sellers have found them very useful in the trials. You might consider using a HCR if you believe:

Your questions answered:

How much will a HIP cost?

This will vary according to the type of HIP you have (for example if you include any authorised documents) and whether your property is freehold or leasehold.  We are currently providing HIPs from £299 + VAT

When will I have to pay?

There are a variety of ways to pay for a HIP, from paying by cheque, credit card or deferring for up to 9 months or completion.

How long will it take to put my property on the market?

Until 1st June 2008, a property can be marketed as soon as a HIP has been ordered (proof of this is required).  After that date the property can be offered for sale as soon as the EPC and land registry documents are ready.  In most cases we are producing these documents in less than 3 days.  The rest of the documents (searches and leasehold documents) have to be assembled within 28 days of marketing the property.

What happens if  I take my property off the market?

A HIP is valid for one year from the date that the property is first marketed.  You can take the property off the market and put it back on again within a year using the same HIP.  However, you will need to consider the terms on which the HIP was provided to you and your contract with your estate agent.

Do I have to update my HIP?

There is no obligation on you or us to renew anything in your HIP.  If something significant happens whilst the property is on the market, then you may choose to do so, but it is the buyer’s solicitor’s responsibility to check if any documents need renewing.

www.homeinformationpacks.gov.uk contains much more detailed information if you have any other questions.

NEXT STEPS

How do I get my HIP?

We will be able to order you a HIP and explain all the choices with regard to which optional information to include and payment alternatives.  Our HIP department will then work closely  with all parties to produce your HIP as quickly as possible, allowing your property to be marketed with the minimum of fuss.

What happens if something goes wrong?

Although the HIP is a new document, a whole range of measures and safeguards have been put in place to help you if you have any questions or problems – you are well protected!

Help
If you have any queries regarding Home Information Packs and would like further information, please either email hips@christopherpallet.com or telephone 01296 484635.


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Home Information Pack
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