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What's in a Home Information Pack? The Home Information Pack contains important information that buyers and sellers need to know. For sellers, providing a Pack upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home. For buyers, the Pack provides essential information about properties they are considering buying. What does a Pack contain? Compulsory items The following compulsory documents must be included in a Home Information Pack. Home Information Pack Index The Index lists the documents contained in the Pack. The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities. 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. Heating and hot water account for 84% of the total energy usage of the average home. The Energy Team would like to play a part in reducing your bills and lowering the impact on the environment.
Sale Statement The sale statement should provide some basic information about the property, including: - 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. Searches Local Land Charges were created to ensure that purchasers of land and property could be aware of any restriction or obligation created by the Local Authority, which was enforceable against successive owners. 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 search of the records held by the relevant water authority will show the provision of drainage and water services to the property. Evidence of Title These documents prove that the seller owns the property and therefore has the right to sell it. Property Information Questionnaire The questionnaire would include information such as:
Leasehold properties A copy of the Lease is compulsory.
Optional items Some documents in the Home Information Pack are optional, known as authorised documents. These include: Home Condition Report A Home Condition Report contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report. The Report is an important part of the Pack, and can be included by sellers on a voluntary basis. Sellers who provide a Report will have an early opportunity to carry out repair work on the property or obtain quotes prior to marketing. Buyers can use it at the beginning of the home-buying process to minimise the possibility of being faced with unexpected repair bills and other surprises. Lenders can benefit by using the Report to inform their valuations, reducing the need to repeat a detailed on-site inspection at the buyer's expense. Home Contents Form It is usual for sellers to declare which fixtures and fittings and other contents of the property are included in the sale, are excluded from the sale, or are subject to negotiation. Other documents Sellers could speed up the sale if they include non-standard searches in the Home Information Pack where appropriate. For example, it's standard practice to obtain a mining search in areas where coal mining has taken place. Sellers in these areas will save time if they provide this search in the Pack. Other searches cover rights of way, ground stability and actual or potential environmental hazards such as flooding and contaminated land. Sellers will also want to include guarantees and warranties for work already carried out on their homes.
What are the benefits of a HIP? Prior to the introduction of the Home Information Packs, one million pounds a day was wasted on failed transactions and buyers would often spend hundreds of pounds on valuations, legal advice and searches on transactions that ultimately broke down. By providing key information at the beginning of the process, Home Information Packs should speed up the process, prevent waste and significantly cut the number of sales that fall through. The average home owner could save around £300 in fuel bills by making their home more energy efficient, and this information can be found within the EPC. Our homes account for 27% of the UK’s carbon emissions contributing to global climate change. Nearly 30% of transactions collapse after terms have been agreed. Over 40% of transactions collapse because of an unfavourable survey or valuation inspection, so property condition is a major reason for failure. Currently only 2% of buyers have a full structural survey carried out when buying a home. Only 20% to 30% of buyers carry out a survey at all – that is 7 out of 10 people who do not. If I agree to an estate agent showing potential buyers my property do I need a HIP? Yes. Provided the agent is marketing the property on your behalf, a HIP would be required and it would be the responsibility of the agent to ensure this. Not having a HIP in place or ordered could lead to a £200 penalty for the estate agent marketing the property. This could lead to a banning order from the Office of Fair Trading if there were a number of such breaches. Do EPC graphs need to be included in the estate agents particulars? Yes. The rules require the Energy Performance Certificate to be attached to the written particulars or, alternatively, for the EPC graphs to be included in them. This applies to electronic copies of particulars posted on websites as well as paper copies. If a seller instructs multiple estate agents do they all require a copy of the HIP? Yes. Even if the HIP is ordered through one agent all agents should: · hold a copy of a compliant HIP and make it available on request to prospective buyers or enforcement officers; and · include the EPC graphs on particulars. Failure to comply with these requirements could be treated as a breach of the duties. If I change estate agent, is the HIP commissioned by the first agent valid for use by the new agent? Yes. A HIP is valid as long as it complies with the regulations and there has not been a break in marketing. However, whether the vendor can take the HIP with them will depend on the ownership of the HIP and the commercial terms that the vendor agreed with their estate agent or HIP provider. How long does a HIP last This is our most asked question. There is considerable misinformation about the HIP and its validity. The only legal requirements are;
Your legal obligation stops there. You have NO obligation to update the HIP no matter how long your house takes to sell. If the buyer or potential buyer’s conveyancer/solicitor is not happy with the contents of the HIP then it is the buyer who bears the cost. You may of course choose to update the information at any time (which we will do at cost). What if I change Estate Agents. If you have pre-paid for your HIP then you should be able to use it with any Estate Agent (subject to their policy), if the HIP is not pre- paid then it will still belong to the HIP provider and you will need their consent to change Estate Agents. What if my sale falls through. You can take your home off the market and put it back on again without the need for a new HIP as long as it is within one year of first putting the house on the market. What does 'Registered' mean The Land Registry is a central register of information relating to land ownership in the country. For a registered property there is a map showing the property outline and a register with details of ownership and any charges e.g. mortgage company names against the register. The register was introduced different areas from around 1900 onwards with the whole of England and Wales finally being covered by 1990. If a property has been sold since 1990 it has to be registered on the land registry. What happens if my property is not registered If your property is not registered then an 'Epitome of title' has to be included in the HIP. This is a collection of legal documents proving ownership, for example title deeds and contracts from your purchase. Can I market my house before the HIP is ready No.home information pack home information packs hip hips watford bushey south oxhey rickmansworth |
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