Under the “old” system most of the information that will be Included in the pack is only produced after an offer has been made and accepted so if there are any problems these only come to light several weeks later by which time the parties may have incurred legal and survey fees, search fees etc. This can cause frustration and delay and may result in gazumping or the terms being renegotiated or even the sale falling through altogether. HIPs will ensure that all of the important information will be provided upfront at the outset. This will create a faster and more efficient home buying system and the main benefit to the seller is that any buyer is much less likely to pull out if they have all of the required information from the very beginning.
Please visit
www.homeinformationpacks.gov.uk for more information.
How a Home Information Pack will benefit your buyer ?Previously most of the information a buyer required was only produced after an offer had been made and accepted. This meant any problems only came to light after the parties had incurred legal, survey and search fees, and resulted in sales falling through several weeks after the offer was accepted. A Home Information Pack will ensure that all the important information is provided upfront, giving peace of mind to both you and your buyer and creating a smoother, faster path to a successful sale. This will allow your prospective buyer to make an informed decision at the outset. The pack includes an Energy Performance Certificate, which will also provide information on how energy efficient your property is.
What does the Home Information Pack Contain ?Compulsory itemsThe following compulsory documents
must be included in a Home Information Pack:
Home Information Pack Index The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities. Where a document that must be included in the Pack is unavailable, the Index must say so, give the reason it is missing, and indicate what steps are being taken to obtain it. Where documents are added to or removed from the Pack at a later stage, the Index should be revised accordingly.
Energy Performance Certificate Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A. The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.
Sale statement The address of the property being sold
Whether the property is freehold, leasehold or commonhold
Whether the property is registered or unregistered
Whether or not the property is being sold with vacant possession
Standard searches The local land charges register relating to the property being sold. If the search is carried out by the local authority, an official search certificate will be provided. Alternatively a personal search company can be used. Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations. A local authority or a personal search company can be used. The provision of drainage and water services to the property. The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).
Evidence of title These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:
