HIPs Are Finally Here!
The Government has introduced a new method of selling properties in the form of Home Information Packs which were due to commence on 1st June 2007. After delays the watered down plans have now been implemented and HIPs are now mandatory for all properties.
The Government have introduced HIPs because they believe that they will reduce the number of sales that fall through by providing key information to a potential buyer at the beginning of the process. Whilst many have been negative about the introduction of HIPs we welcome any change that will speed up and make transactions less stressful.
Anyone wishing to sell such a property will need to have commissioned a HIP (albeit it does not need to be available) before marketing their property. After the end of 2007 a HIP will need to be available prior to marketing.
Here at Metcalfes we will be providing HIPs on behalf of Clients and Agents. We aim to provide a completed HIP within 10 working days so as to ensure prompt compliance and hopefully leading to early exchange of contracts.
Amongst other things the HIP must include, a Local Search and Water and Drainage Search, the title of the property (including the Lease if relevant), and an Energy Performance Certificate. There are also a number of documents that are voluntary including a Home Condition Report. Eventually the majority of residential properties will require a HIP although there are limited exceptions. We have contacts with local surveyors to provide the Energy Performance Certificate.
The cost of the HIP will vary, depending on whether it contains a Home Condition Report and will be more for a large, unusual or more valuable property. However, if you are also purchasing a property you will not have to pay these fees on that transaction. So, in effect, most of these costs are simply being moved from your purchase to your sale.
If our clients instruct us to prepare a HIP, and subsequently in the sale of the property, then a reduction in our normal charges for conveyancing will be offered.
We also provide a service for potential buyers. We can advise you on the content of the HIP to assist a buyer in making an informed decision. If we are instructed to act on a purchase there will be no charge for this initial advice provided you instruct us in the matter.
We are offering all clients the ability to collate relevant information on their property and we will hold this on their behalf pending a potential sale in the future.
Please do not hesitate to contact Julia Smart or Dimple Chudasama for and initial consultaion on 0117 929 0451 or email hips@metcalfes.co.uk
This press release summarises the law on issues which we believe may be of interest to you. It is not a comprehensive review of the subjects and accordingly is published without responsibility for loss occasioned to any person(s) acting or refraining from action as a result of information published