At the end of a long and controversial lead-in period which entailed many changes and much consultation with solicitors, estate agents and lenders, home information packs (HIPs) are finally here. So what is the current situation?
As of 1 August 2007, packs are only required if you are selling a residential property with four or more bedrooms. The exceptions will be where no marketing takes place (eg a sale to a member of your family) and for certain types of sale, including ‘right to buy’ or similar, properties which do not have completely vacant possession, mixed sales (eg a shop with a flat), portfolio properties, seasonal and holiday accommodation, and non-residential property – the latter includes properties with more than 5 hectares of land.
Eventually all freehold and leasehold homes (with the above exceptions) that are advertised for sale, either privately (including on the internet) or through an agent, will need to have a HIP in place. There is as yet no date for the next phase of HIPs, but it is likely to be before the end of the year.
If a property which requires a HIP doesn’t have one, or the HIP does not comply with regulations, the seller can be issued with a penalty notice by Trading Standards. If you were thinking of risking a fine rather than buying a HIP (estimated to cost between £350 and £600) the Government has this to say: “The £200 penalty charge is not a ‘one-off’, it can be repeated if the offence is repeated.” That means you will get another notice if you continue to market your property without an appropriate HIP.
HOW TO GET A HIP
Providers such as Hatchers are all geared up to arrange your HIP and move the transaction along very quickly. We advise that you contact us as soon as you decide to sell so we can start collating information for the pack and commission an energy assessment in the period you are appointing an estate agent and getting a valuation. Remember, a HIP must be in place before the property is advertised (although until the end of this year a property can be advertised for sale without a complete HIP as long as one has been commissioned).
WHAT’S IN A HIP
Every pack must contain a copy of the property’s title documents, local authority, water and drainage searches, an energy performance certificate (EPC) and a proof of request if any documents are not available. The pack must also have an index and show the property address and seller’s name. Optional documents, which are likely to speed up the sale, include additional searches, completed property information forms, and copies of any NHBC certificate, planning permissions or buildings approvals.
NO CHEATING!
When news emerged that only four-bedroom homes required a HIP, a light went on in many people’s heads: “We can call our fourth bedroom a study!” However, neither your solicitor nor your estate agent would be willing to flout the Property Descriptions Act, and the Government was quick to issue the following statement: “The average sale price for a four-bedroom home is around £120,000 more than that for the average three-bedroom home. Nobody would seriously suggest that people will want to devalue their property by that much for the sake of around £350 — costs which apart from a £100 EPC already exist in the home buying and selling process.”
