HIPs -
Home Information Packs − Are here!Selling and buying a home can be stressful, prone to delays and possible failure. The national average for transaction collapses after a sale has been agreed is over 30%.
The Government say that currently one million pounds a day is wasted on failed transactions with buyers often spending hundreds of pounds on valuations, legal advice and searches on transactions that ultimately breakdown. They hope that HIPs will speed up the process, prevent waste and significantly reduce the number of sales that fall through. The HIP will help improve the process by making available at the outset, some of the information required to achieve the sale.
As at the 14th December 2007 anyone marketing a home for sale, will be required by law to produce a Home Information Pack.
The pack will have to contain the following:
Optional documents may include:
An important part of the HIP is the Energy Performance Certificate. This is a report designed to tell home buyers and sellers about the home’s energy efficiency – using a rating A to G along the lines of those used to rate fridges and other domestic appliances. They will also make recommendations for cost effective improvements that can be made, to help cut fuel bills and carbon emissions. Our homes account for 27% of the UK’s carbon emissions, contributing to global climate change. Perhaps we should ban houses not cars!
Who will compile my pack?
Woolley & Wallis will offer a full HIPs service, we will arrange for the Home Information Pack to be prepared for your property and will keep it up to date for you. This will enable you to start marketing without unnecessary delay.
How much will it cost?
The cost of the pack for the majority of properties is likely to be of the order of £500. This may vary depending upon the size of property and nature of construction.
Can I market without a pack?
You can market your property as soon as you have applied for your HIP. Provided
that you have proof of application for all the required elements, you may
market the property. From the 1st January 2008 you will need a complete
HIP before marketing can commence, with the exception of the EPC. If the
EPC has not been obtained after 14 days marketing may commence if proof
can be given that it has been applied for.
Failure to comply will attract a penalty charge of £200 and will be deemed an Undesirable Practice under The Estate Agents (Undesirable Practices) Order 1991. This order will allow the Director General of Fair Trading to ban the agent or agents involved, from carrying on estate agency work, either at all or of a description specified.
Do I need a HIP if I my property is currently on the
market.
If your property is currently on the market you do not require a
HIP. This exepmtion applies for as long as the marketing continues. The
Government may at some time in the future set a date at which all property
on teh market will require a HIP.
For how long is my HIP valid?
There is no requirement to update the pack during the sale process but it
may be sensible to do so. If a property is withdrawn from the market and
is then re marketed by the same seller within 1 year from the original marketing
date a new pack is not required. Again however, it would be sensible to
update this.
Do I require a HIP if I let my property?
No, but from 1st October 2008 you will be required to supply an Energy Performance
Certificate.
Do I require a HIP for my Farm?
You do not require a HIP if the property is being sold as a business i.e., as a working farm.
You still may be well advised to provide all or part of the HIP as it may help the sale.
PLEASE NOTE - legislation is constantly changing and you would be well advised to contact us for an update before committing to any course of action. For more information on HIPs please telephone 01722 424524
October 2007