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Home Information Packs
The Government's new Home Information Packs (HIPs) were introduced under the provisions of the Housing Act 2004 and are being promoted under the slogan "Buyers & sellers - Better Buying, Simpler Selling". HIPs were intended to become compulsory for anyone marketing a home for sale in England & Wales from 1 June 2007, however this deadline was extended to start on 1st August 2007 and initially applies only to four bedroom or larger properties. From 10th September 2007 this includes three bedroom properties also and from 14th December 2007 every property newly marketed for sale will need a HIP.
Under the Home Information Pack Regulations 2006, all HIPs must contain the following information:
* Terms of sale
* Evidence of title
* Replies to preliminary enquiries
* Copies of any planning, listed building and building regulation consents and approvals
* Copies of warranties and guarantees (new properties)
* Copies of guarantees for work carried out to the property
* Standard local authority, drainage and water searches
* An Energy Performance Certificate (EPC)
Leaseholders must also provide the following documentation:
* A copy of the lease
* Most recent service charge accounts and receipts
* Building insurance policy details and payment receipts
* Copies of any regulations made by the landlord or management company
* The Memorandum and Articles of Association of the landlord or management company
Below is a summary produced by the Royal Institution of Chartered Surveyors of the revised HIP Regulations and Energy Performance Regulations amendment, published by Communities and Local Government on 11th June 2007:
* From 1st August 2007 there is a legal requirement to order a HIP for any property coming onto the market with four or more bedrooms. From 10th September 2007 this applies also to properties with 3 bedrooms.
* The property can be marketed before any HIP documents have been obtained, as long as proof is provided that the documents have been ordered and there is a belief that they will arrive within 28 days.
* Once the EPC is available a HIP must be provided to prospective purchasers. Other documents must be added when they become available.
* An energy asset rating need only be included in written particulars once a HIP has been received.
* Whether or not the HIP arrives before the property is taken off the market (agreement to sale having been reached), an EPC must be provided at exchange.
* There are no dates for when HIPs will apply to 3 bedrooms and then to all other properties, since these roll out dates are dependent on the number of energy assessors who come forward for accreditation, but will be before 1 January 2008.
* Roll out to three bedroom properties, then the remainder, will be achieved through Commencement Orders giving three weeks' notice of the additional phase.
Acknowledgements: www.homeinformationpacks.gov.uk and www.rics.org.uk.
These notes are offered as a general guide only and do not constitute legal or financial advice.
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