Introduction To Home Information Packs
From September 2007, all home owners in England and Wales, with a property of 3 bedrooms or more, will need to prepare a Home Information Pack before putting their home up for sale. VideoJug gives you all the information you need with this introduction to home information packs.
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Step 1:
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What is a HIP?
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Home Information Packs will contain all the information useful to a potential buyer. The idea behind HIPs is simple: the more information that is presented to the buyer upfront, the slimmer the chance of a nasty surprise scuppering the sale further down the line.
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Step 2:
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Why
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The decision to introduce Home Information Packs (HIPs) in England and Wales is the Government's response to years of complaints from property buyers and sellers that the present system is inefficient, wasteful and slow.
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Step 3:
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The Law
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By law, everyone who puts their property up for sale in England and Wales will eventually be legally obliged to have an information pack ready BEFORE their home goes on the market. Failure to do this could lead to a substantial fine and the possibility of being sued by your buyer.
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Step 4:
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What is in a HIP?
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The Pack includes an Energy Performance Certificate, containing advice on how to cut carbon emissions and fuel bills and:-
• terms of sale
• property deeds
• correspondence
• copies of any planning, listed building and building regulations consents and approvals
• copies of warranties and guarantees
• guarantees for work carried out on the property
• replies to local searches
And for leasehold properties:
• a copy of the lease
• most recent service charge accounts and receipts
• building insurance policy details and payment receipts
• regulations made by the landlord or management company
• memorandum and articles of the landlord or management company.
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Step 5:
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What is an Energy Performance Certificate?
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Energy Performance Certificates will allow potential buyers to see the property's energy efficiency - a bit like when they buy a fridge. The homeowner will also be presented with some tips on how the energy efficiency of their home can be improved, at a cost of anything from £100 to £150.
Buyers will not have to contribute to the cost of a HIP. They should still do their own local authority searches done and mortgage companies will still insist on a proper valuation. The information in the HIP will be useful but it may soon be out of date. Your solicitor may well advise that you get your own searches done and mortgage provider may also want fresh property searches.