The HIP or sellers pack

The Government is committed to making it easier for people buying and selling homes in England and Wales through the home information pack after June 1st 2007.

Are you ready for The Home information pack?

 You must have a home information pack in place, if you want to sell your home after 1st June 2007.

• However you do not need a HIP, if your property is marketed before 1st June 2007 and is continuously marketed throughout the intervening period,  you require a pack after 31st December 2007.

Are there any exclusions?

The following properties will be exempt from the Home Information Pack regulations:

• Properties in Scotland and Northern Ireland
• Private sales where the property is not offered on the open market (eg. to a family member, neighbour, or friend)
• Non-residential property (i.e. shops or mixed commercial)
• Properties sold with sitting tenants and not available for owner occupation
• ‘Right to Buy’ sales by Local Authorities or other social landlords
• Homes held on a lease of less than 21 years
• New homes – no survey required if sold with an NHBC, Zurich, or similar warranty.

Estate Agents

Try and avoid estate agents offering to compile your HIP, as the extra’s they can charge and the cost, make the  contract terms prohibitive.

If you want to use an Estate agent to sell your home, we have a contract here in plain english. Estate agents contract.

Always instruct estate agents as a Sole agency, this means that your estate agents are entitled to commission ONLY if they introduce your buyer and bring about the sale of your property.

This means that if you sell your house, for E.G  by advertising on the internet or by a direct sale, you do not pay them a commision..

The Home information pack will:

• provide key information needed by home buyers and sellers at the start
of the process, enabling people to be better prepared before they make decisions and negotiate terms

• supply information in an understandable, user friendly format

• reduce frustration and stress

• cut wasted costs by reducing the high rates of failed transactions..

_The key issues concerning Home Information Packs are those of cost and time to delivery.

Read the full article on the HIP

Most properties are freehold registered, so costs should be standardised, but in terms of timing, there are significant challenges ahead with ensuring local authorities meet the timing deadlines.

It should be noted that with leasehold properties in particular, a managing agent is free to charge whatever fees they see fit to produce the information necessary for the HIP.

Home Condition Report Costs

A home inspection of a flat will take considerably less effort than for a large country house.

Single fees for a home condition report are not practical and larger properties will naturally be higher.

Whilst the government has estimated a figure of £300 plus VAT, for larger properties the figure is expected to be between £750-£1000.

Energy Performance Certificate Costs.

Discussions are underway with a number of providers, and although there are suggested costs of about £80 plus VAT, this will be based on sufficient supply of inspectors. SAVA have estimated fees to start at about £100 for a typical three bedroom house.

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If your Estate agent makes a mistake you will have redress.

Under the 2004 Act, where properties are marketed through an estate agent, the estate agent will have to ensure that a HIP is assembled when marketing starts and that the documents contained in the HIP are authentic and complete. This duty comes into force on 1 June 2007.

As a result of this Order, consumers will have access to independent redress should the estate agent fall short of any aspect of their duties as laid out in Home Information Pack legislation.
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We can compile your Home Information pack for around £380 do not be overcharged.