Home Information Packs (HIPS)
Home Information Packs (HIPS) became a legal requirement on
1st August 2007. Currently they are applicable to all properties
with 3 or more bedrooms however it is the intention of the government
to gradually make them compulsory for all properties in 2008.
What are the benefits?
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, free of charge.
What does a Pack contain?
The following compulsory documents must be included in a Home
Information Pack.
Home Information Pack Index, Energy Performance Certificate,
Sale statement,Standard searches, Evidence of title
Additional information for Leasehold properties where appropriate
i.e. managing agents information and service charge accounts.
What do I need to do?
As your agent we would recommend providers to you but you can
of course shop around or consult your solicitor. However, you
must have commissioned a Home Information Pack by the time that
the property is on the market. As soon as you have received
the Energy Performance Certificate (a compulsory part of the
Pack), you must produce the remainder of the pack and be able
to provide potential buyers with a copy, or any document from
it, on request. In most cases, this period is 14 days after
the date of the request.
How long does a Pack last for?
While the property is on the market, there is no need to update
the Home Information Pack (ultimately, the market decides whether
the documents remain acceptable and up to date).
If the sale of your property stops and then starts again, you
would normally be required to assemble a new Pack and to update
those documents which are now out of date according to the requirements
of the Home Information Pack Regulations. However, the seller
can carry on using the same Pack without the need to update
any of the documents in the following circumstances:
" Where marketing stopped because the seller accepted
an offer and wants to restart marketing because the sale has
fallen through, provided that remarketing starts within one
year of the date when marketing first began or, if later, within
28 days of the sale falling through.
" Where marketing has stopped for any other reason, the
seller may remarket the property with the same Pack provided
that remarketing starts within one year of the date when marketing
first began.
What about new-build properties?
Sellers of newly built homes will have to provide a Home Information
Pack for potential buyers. Where a home is marketed "off-plan"
before it is physically complete, it will need a Pack (subject
to the Packs phased implementation) but it will not have a full
Energy Performance Certificate (EPC). Instead the Pack will
contain a Predicted Energy Assessment. This will look similar
to the graphs from a full EPC and will be produced from the
design plans for the building rather than a physical inspection.
We are here to help. If there is any part of the process which
causes you concern, please call the office for further advice.
Alternatively you can visit the government website at www.homeinformationpacks.gov.uk
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