Home Information Packs

2007 will see the introduction by the Government of the most fundamental changes to the house buying process in England & Wales, with the arrival of Home Information Packs (HIPS).  From 1st June 2007, it will be a legal requirement for sellers to have prepared a HIP before they put their house on the market.

AMG are associate members of the Association of Home Information Pack Providers and we are working closely with our clients to deliver the most efficient cost effective solution whilst integrating the changes within our current process.

Clients, solicitors and the marketing agent can view and track all the individual elements of the HIPs pack online via our TESSA system (for more information on TESSA – see our technology page).

WHAT IS A HIP?
WHAT DOES A HIP CONTAIN?
WHAT IS A HOME CONDITION REPORT (HCR)?
WHAT PROPERTIES WILL REQUIRE A HIP?
WHAT PROPERTIES WILL NOT REQUIRE A HIP?
WHAT IF ALL THE DOCUMENTATION IS NOT AVAILABLE ON THE PROPERTY?
HOW LONG WILL A HIP LAST?

WHAT IS A HIP?

A set of documents provided by the seller giving prospective buyers key information about the property being sold.

WHAT DOES A HIP CONTAIN?

The government are yet to give a definitive list of items within a HIP however the following items are likely to be a requirement:

• Terms of Sale
• Evidence of Title
• Local Searches, planning permission certificates
• Copies of the lease and associate documentation (If required)
• Guarantees
• Energy Performance Certificate
• Home Condition Report (Now Optional)

WHAT IS A HOME CONDITION REPORT (HCR)?

The optional HCR is a form of survey on the property that will be a legal requirement in the HIP.  The HCR will comment on the condition of the property and give the property an energy rating.  The HCR will be completed by a qualified home inspector, many of which will already be chartered surveyors.  The HCR does not provide a valuation of the property. The Energy Performance Certificate is still mandatory.

WHAT PROPERTIES WILL REQUIRE A HIP?

It will be a legal requirement for all residential properties to obtain a HIP before marketing of the property begins. This includes shared ownership properties and properties sold through auction.

WHAT PROPERTIES WILL NOT REQUIRE A HIP?

• Non-residential/commercial property
• Mixed residential and commercial use
• Portfolio sales
• Short Leases
• New build properties

WHAT IF ALL THE DOCUMENTATION IS NOT AVAILABLE ON THE PROPERTY?

The property can still be marketed after 14 days if despite reasonable efforts a particular document cannot be sourced either because it has been lost or because there is a delay in getting it

HOW LONG WILL A HIP LAST?