1
Apr
2007
Written By .

Home Information Packs - Launch Looms
writes Lorraine Smallwood from Sydney Mitchell Solicitors and Estate Agents

The Government has confirmed that Home Information Packs (HIPs) are to go live on 1 June 2007, following their trial at several locations throughout the country. After that date, all vendors of houses and flats in the UK will have to supply prospective purchasers with a HIP. This includes sales made at auction.

Sellers will be required to assemble, prior to sale, much of the essential information currently obtained by the purchaser, after an offer for a property has been accepted. The vendor will bear the cost of producing the HIP when a property is put on the market.

The Home Information Pack Regulations 2006 set out provisions on the 'required' and 'authorised' content of the Pack. Required documents must be included in the pack where appropriate whereas authorised documents may be included at the seller's discretion.

The required documents are:

  • an index listing the contents of the pack;
  • a sale statement - which will indicate whether the sale is freehold, leasehold or commonhold - and any covenants or restrictions which apply;
  • evidence of the vendor's title;
  • standard searches (i.e. local authority enquiries and a drainage and water search);
  • an Energy Performance Certificate (EPC);
  • where appropriate, commonhold information (including a copy of the commonhold community statement);
  • where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance);
  • where appropriate, a New Homes Warranty; and
  • where appropriate, a report on a home that is not physically complete.

    The authorised documents include:

  • a Home Condition Report;
  • guarantees and warranties; and
  • other searches.

    Originally, the Home Condition Report, based on a professional survey of the property, was intended to be a required document and the Government is still keen to promote its use, if practical problems can be ironed out, as it believes sellers offering a full Home Condition Report will be more likely to benefit from swifter sales and will suffer fewer transaction failures as a result of problems coming to light later on in the purchase process.

    A HIP will be valid while the home is continuously marketed for sale. The Regulations do allow for a period where the property might be taken off the market while, for example, it is under offer or to allow a seller to change estate agents. The main time-sensitive items in the HIP are the local searches, which are generally acknowledged to be valid for six months.

    Whether or not everything is in place to allow a smooth introduction of HIPs nationwide remains to be seen. Following the testing of HIPs in trial areas, the Government has proposed changes in order to reduce the time it takes to complete local searches. Both the quality of the service provided and the amount charged for doing this vary from one area to another. A further proposal is that estate agents must include EPCs with their property particulars for the first time.

    • Share on Facebook
    UK Top Tier Firm 2022 Lexcel Practice Management Standard Birmingham Law Firm of the Year for 2021 Resolution Collaborative Family Lawyer
    The Law Society Accredited in Family Law Conveyancing Quality Scheme