Property, Wills and Probate

HOME INFORMATION PACKS

WHAT DO THEY REALLY MEAN?

We’ve all heard such a lot about Home Information Packs (HIP) but what do they really mean for most of us and what will they really cost us?

Locally their integration into the property market so far has been slow with many properties being sold without the benefit of a HIP.

Previously, any property already on the market before the inception date (1st August 2007 for four or more bedrooms, 10th September 2007 for three bedrooms and 14th December 2007 for all properties) did not require a HIP. However, from 14th December 2007 all properties marketed for sale in England and Wales, regardless of the number of bedrooms, need a Home Information Pack.

If your house was already on the market prior to these dates a HIP will not (at the moment) be required.

So, what does that mean for you?

What does a HIP contain?

Where do you get one?

Who pays for it and how much?

A Home Information Pack contains an Energy Performance Certificate (containing advice on how to cut carbon emissions and fuel bills) as well as a sale statement, searches and evidence of legal title (who owns the property). Leasehold property sellers must also provide a copy of the Lease (and Management Company Information at a later date).

From 1st June 2008 if you intend to market your property for sale, your Home Information Pack must be in place before your property goes on the market.

Failure to have a HIP could result in the person marketing the property being fined £200 per day if the property is marketed without a HIP !

So, where do you obtain your HIP? Of course, your Estate Agent could do this for you (at a cost) and they are often most people’s first point of contact when selling their home.

Your Solicitor or Licensed Conveyancer however is often in a more advantageous position to obtain ALL of the information needed for your HIP and will do so without charging any additional commission, usually making the overall cost of your HIP considerably lower than if you went through your Estate Agent.

(Solicitors of course are governed by The Law Society who discourages Solicitors adding any extra charge to the cost of your HIP – an important point to remember when making your choice!)

Jane Overland from Bird & Co Solicitors advises, "We know what a HIP is, we know who has to have one and we now know the most cost effective place to obtain one".

The cost of a Home Information Pack falls with the Seller and yes, this does mean extra costs for those selling their home. However, the costs do not always have to be paid up front and deferred payment usually for around 6 months can be arranged for a small extra payment. On the flip side of course, if you are buying a property, you could well save money if the seller has put a HIP in place, as you will not have to bear the cost of searches.

Bird & Co Solicitors have found that a Home Information Pack can be commissioned for as little as £339.00 plus VAT.

The aim of course, of the HIP, is to speed up the conveyancing process and to attempt to make it clearer and simpler by eliminating those who are not committed to selling their homes but merely “testing the market”. Everyone will of course think twice before marketing their home if it is actually going to cost them money! Chains will move more quickly if everyone has already got their searches in place before they start.

In the long term, the Home Information Pack will bring benefits to the home owner and the property market and will undoubtedly speed things along once all properties are included and the introductory period is over. From 6th April 2008 even newly built homes will require a HIP, and all newly constructed properties will require an Energy Performance Certificate.

Remember, if you are selling your home, shop around BEFORE putting your home on the market and see where you can get the best deal.

Jane Overland or Rebecca Tasker from Bird & Co Solicitors would be happy to provide you with a quote for a HIP – please ring on 01476 591711 or 01636 650880 for more information.

If you are buying a property, whether it is your first home or a subsequent purchase, ENQUIRE if there is a HIP BEFORE proceeding. This helps you to budget and get the best possible deal available.

Whether buyer or seller, you are entitled to see a copy of the Home Information Pack.

So, we hope the mystery has been solved for you.

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