Why are they being introduced?
Currently, much of the essential information needed by home buyers and sellers only comes to light when an offer has been made and accepted. In the meantime, buyers are negotiating in the dark and are often wasting money on legal fees, searches and surveys. Providing all the information up front, at the time of marketing a property, will make the home buying and selling process more efficient and transparent. Having local searches included in the packs will also speed up the process of the transaction.
What are they?
They aim to take the stress out of buying and selling a home by providing key information upfront. Every Pack will include Energy Performance Certificates which, like fridges will provide A - G ratings on the energy efficiency of a home, plus advice on how to make further energy savings. The Packs will also include information such as searches and other legal documents. A Home Condition Report giving details on the condition of a property can also be included in the Packs on a voluntary basis but to begin with, buyers will still have to make their own arrangements in terms of arranging a survey on the property.
When are they coming in?
From 1 August 2007, anyone selling a property (4 bedrooms or more) must provide potential buyers with a Home Information Pack. This is a set of documents providing important information about a property including energy efficiency, searches and evidence of title. The government will also be encouraging sellers to provide a new document called the Home Condition Report although this is not yet compulsory. No date has been set for properties with less than 4 bedrooms.
What do you need to do now?
If you have a 4 bedroom + home - you require a HIP as of now. If you were already on the market before the 1st August 2007, and you can prove it has and still is being advertised you are exempt from requiring a HIP until the 31st December 2007 to sell the property, if at this point it is not sold then you WILL require a HIP.
NEWS FLASH
The Government has now laid down the commencement order for HIPs for 3 bedroom homes to take effect for any properties marketed on or after 10th September 2007. 11 million homes fall into the 3 bedroom category.
