KNOW YOUR LEGAL OBLIGATIONS
If your home is smaller than 4 bedrooms you are HIPS free, and can stop reading now. See be HIPs free
- However there is no legal definition of 4 bedroom and larger properties, so we could all be HIPs free, just by marketing your home as a large 3 bedroom or large house with rooms…
From the 1st August 2007 in England and Wales, the law will require sellers of 4 bedroom and larger residential property or their estate agents to have ordered a Home Information Pack before putting their homes up for sale.
Which means you can market your home the same day, without waiting for the pack to arrive, should you need one of course.
The Legal bit
Secretary of State Ruth Kelly announced that HIPs will not now be implemented until August 1st – and then only for four bedroom properties and larger.
- This will affect around 17% of houses which have four bedrooms or more, according to the Council of Mortgage Lenders.
So get your home up for sale now, to avoid having to pay for a HIP.
You do not need to Instruct an Agent, a simple sign in your window will do or market online. If you are using an estate agent get them to use this, an upfront.
- Estate agents contract from Which, and pay no more than 0.95% commission.
Just print it out. If they refuse to sign the Estate agents contract then walk away.
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.
Sole agency does not prevent you from selling your house privately. You can place an ad in your local newspaper or use an online property advertising service.
Are there any exclusions to the sellers pack?
The following will be exempt from the Home Information Pack regulations:
- Properties smaller than 4 bedrooms
- 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.
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an index,
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an Energy Performance Certificate,
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the sales statement and evidence of title.
For the other compulsory documents
– the local property searches and certain documents for leasehold properties –
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The Government is initially allowing flexibility. Marketing can begin provided the missing documents are added to the Pack as soon as possible.
The required information must be in the Pack from the first day of marketing with the
exception of searches and leasehold/commonhold information.
There must be evidence in the Pack that these documents have already been commissioned.
If you can provide HIP for £380, how much would I expect to pay for home condition report,and who would generally provide this.
Hi Norman we do not supply HIPs only advice
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.
Please note. Ask to see the energy inspectors and home inspectors, Criminal record check or CRB form. If they refuse then close the door…
From <a href=”http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/04/22/nrhip22.xml” rel=”nofollow”>The Sunday Telegraph </a> One very nervous gentleman did exactly that, but a smile slowly spread across his face when he was assured that his criminal peccadillo would not prevent him “assessing” up to 10 houses a day.
“Looks like I’ll be fine,” he told me. “After all, we’ve all got skeletons in our closet, haven’t we?”
“From The Sunday Telegraph One very nervous gentleman did exactly that, but a smile slowly spread across his face when he was assured that his criminal peccadillo would not prevent him “assessing” up to 10 houses a day.”
The real scam at the moment is the number od DEA training providers signing up DEA who have no chance of getting work becuase of their work background or business skills. It’s just like those companies you set advertising IT Starting Salaries on £28,000 – and they give you a 4 week networking course!?
If your house is on the market before the cut off date and you move agents, or put your home on line, do you need the pack?
Hi Pat
If your home is on the market before june 1st 2007 then you will not need a pack if for sale continues until 1 JAN 2008.
Regardless if you change agents
Chris
Chris, I stand corrected – you’ve reinstated one of my other posts. Thankyou. I know it sound like a rant – but there are 2 sides to everything.
One thing I do want to is point out that when selling a house you will be SHOWING POTENTIAL BUYERS AROUND WHO HAVE NOT BEEN CRB CHECKED. Please be wary of this and don’t do it alone. Especially if you are doing your own selling – as estate agents ask for some kind of ID before sending viewvers round (I think).
What you’ve picked up on is misinformation spread by the daily mail who have been running an anti HIP campaign since 2006 and has now become an urban myth.
DEA’s and Home inspectors have been CRB checked. Here’s an extract from the scheme code of conduct – which had to be approved by the home secretary – explaining what will be considered if a CRB check picks up any offences (sorry it seems like a rant again but it takes a lot of effort to convince people of the truth)…
A. The relevance of the offence to the role of DEA where:
• Protection of the public is of paramount importance, and
• Whether the offence will compromise the integrity, credibility and/or professional standing of any applicant.
B. The seriousness of that offence
• The more serious the offence, the stronger the possible argument for rejection of the application or revocation of accreditation, baring in mind the degree of any harm caused.
C. Whether there is any significant pattern of offending
• Was the offence an isolated incident? If not, what other similar offences have been committed?
D. How recently the offence was committed
So if you’ve been fined £80 for disturbing the peace on a stag night you “might” be ok. But any fraud, violence or sexual offences and you won’t be getting in.
Simon.
My house was put on the market on 18th June. If I change agents will I need to pay for a HIPS?
Peter
Hi Peter
If you change agents then you may find that they will offer you a hips pack free
However agents are back dating instructions, so you are HIPs free.
You did put you home on market before August so you are hips FREE
This should help
Chris