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Home Information Pack (HIP)
Starting from August 1, a Home Information Pack (HIP), sometimes called a Seller's Pack, will have to be provided before a property in England and Wales can be put in the market for sale. Every vendor of a property with four or more bedrooms will be required legally to order the HIP before putting their home on the market.
HIP has been introduced by the government in a bid to improve the home buying process. Home information packs were initially due to become mandatory on June 1, but the government, after months of pressure from the property industry, delayed the introduction until August 1. After this date, home information packs will be implemented and as per law it will be mandatory that all four-bedroom or larger homes put up for sale on the open market must come with a home information pack, containing details about the property. Eventually, all properties being sold will need to have a home sellers pack. HIP will contain all the required information people need to buy and sell a home. It will help people make informed decisions about what is probably the most expensive and important purchase of their lives. First time buyers will especially be assisted with the Packs as they receive them for free.
The pack will be in the form of a set of documents about the property, an Energy Performance Certificate, local authority searches, title documents, guarantees etc.
IPBRE offers you a fast, accommodating, low-cost service from a partner who can be trusted. Several of the UK’s leading agents contact us for this purpose. To avoid a last minute rush, you can sign up with us today.
The guide to HIP has been made to answer your queries such as what needs to be included? How much are they going to cost? Etc
Guide to HIPs
The flow of information is a major advantage of introducing HIPS to buyers. Currently, problems with a property come into notice once the offer has been made and accepted. In such a situation, when new information about a house is revealed, complications with the transaction can occur. According to the government, the current system is outmoded and doesn’t benefit either buyers or sellers. However, with HIPS in place, time and expense will be saved and fewer deals will collapse.
This is because HIPS ensure that details about a house are out in the open from the moment a transaction takes place.
Benefits of Home Information Packs
HIPS are expected to lower the risk of failed transactions saving money to a lot of people. A Home Condition Report is essential and will need to be conducted by a qualified Home Inspector who is regulated by an approved certification scheme.
The revised process should seem more affordable to first-time buyers because they automatically receive information about the house without having to pay for it. The seller pays for the pack only after a set period or after the house is sold. Some estate agents might offer free packs as part of their usual agency fees.
Home Condition Reports will not include surveys. Although an HIP pack is not a valuation assessment, it will contain useful valuation information. A Home Condition Report will provide details of the condition of a property and its efficiency on energy.
A Home Condition Report will contain more information than a standard lender valuation survey. This information can then be passed to lenders who can use it for valuation purposes.
Home Condition Reports
Home Condition Reports will be carried out by Qualified Home Inspectors who will be certified, insured and trustworthy. Only those inspectors who have qualified under a certification scheme will be in the position to carry out these reports. The Home Condition Report will be slightly similar to the current mid-level surveys (the Homebuyer survey).
It will be the legal right of lenders, buyers and sellers to rely on the information provided in the Home Condition Report. Buyers will not need to have their own surveys conducted but the lenders will still be required to carry out valuations. However, Home Condition Reports is expected to make their lives easier.
Home Information packs will be required to be less than three months old when a property is placed on the market. The pack remains valid throughout the sales process. Updates on the packs will be offered at a reduced rate and the packs are expected to only take a few days to complete.
Contents of Home Information Packs (HIPs)
HIPs are expected to lower the risk of failed transactions, saving the estimated £1 million lost per day. A Home Condition Report is an essential part, and this will need to be conducted by a qualified Home Inspector who is regulated by an approved certification scheme.
The Home Information Pack is expected include the following:
In addition, for leasehold properties:
The consumer redress scheme
With the introduction of HIPs, the government will oblige estate agents to belong to an approved redress scheme, meaning that the homebuyers will be able take redress against estate agents.
The reason for doing so is to ensure that fraud estate agents are not able to operate in this country. The redress scheme will also improve standards of service and provide a way for consumers to redress without going to court. The redress scheme will deal with various complaints related to home information packs and award compensation when complaints are upheld. Refusal by an estate agent to join the scheme will result in a banning order under the Estate Agents Act 1979.
In the press
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