ABM Solicitors & Advocates

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Home Information Packs

Home Information Packs (HIPs)

What is a HIP?

The Government has introduced Home Information Packs to improve the process of buying and selling a home. The UK Government felt that this could be a stressful and costly experience which was prone to delay and failure.

FROM 14 December 2007 all home owners in England and Wales selling a residential property on the open market will need to arrange for a Home Information Pack to be prepared before putting their homes up for sale. The Packs will contain an Energy Performance Certificate, various searches and legal documents, which will be mandatory. A Home Condition Report can also be included by sellers on a voluntary basis.

What must it contain?

Required documents

Index of Documents
Statement of Sale*
Land Registry and Title Plans *
Energy Performance Certificate (EPC) *

Local Authority Search
Water Search
New Homes Warranty (New Build/ Converted properties)
Leasehold Documents – Lease, landlord details etc (Leasehold properties)
Index map search – Unregistered land
Legal Review Report **

* These documents are required before a property can be marketed

The remaining documents must be obtained within 28 days of the property being placed on the market

** Legal review and solicitor involvement

A solicitor review helps ensure pack compliance
Searches and Land Registry information can be checked for key elements
Considerable benefits can accrue to both vendor and agent by having the same solicitor review the HIP and carry out the actual conveyancing work
The HIP will be recognised and trusted by the buyer's solicitor.

Are there any other recommended reports?

Yes there are a number of further recommended reports and forms; these are referred to as Authorised Documents. You may find that when your Legal Advisor makes their Legal Review Report they recommend including some of the Authorised Documents

Authorised documents (these documents are discretionary)

Home Condition Report (HCR)
Home Use Form
Home Contents Form
Additional Searches – there are a whole range of these which could be included

· Environmental

· Mining

· Flood Risk

· Chancel Repair Liability

· Local Neighbourhood information and planning application details

Warranties, Guarantees and Insurance policies relating to work or improvements carried out on the property.
Copies of Building Regulations and Planning Applications

Why include any authorised (discretionary) information?

Help sell the property by presenting positive information
Environmental and other searches can help avoid delays, and the risk of the sale falling through
Disposing of potential issues before they arise
Deal with any issues that may occur well in advance of the exchange
The inclusion of the Home Use Form can highlight potential issues early
The inclusion of the Home Contents Form can speed up the sale

What does the Law say I must do?

You, and / or your Estate Agent, will be a law-breaker liable to a fine of between £200 and £500 if found trying to sell a home without a Pack, or for the first 14 days if your Pack is ordered but hasn't arrived (this means no advertising, no board, no flyers not even a chat in the pub).

Under the Housing Act 2004 Government will require estate agents marketing homes for sale with Home Information Packs to belong to an approved redress scheme. This will guarantee home buyers and sellers access to redress and help to deal with rogue agents.

What will it cost me?

We anticipate that, as defined at the time of publication, a Basic Required HIP will cost around £350 plus VAT for a 4 bedroom property or smaller. Larger properties may cost more depending upon the costs of providing an EPC. Currently EPCs will be priced by the individual inspectors on a sliding scale and therefore we cannot be precise, however as initial demand subsides we expect prices to reduce.

Upgrading the HIP to include additional authorised searches (for example an Environmental Search) will cost from £30 depending upon which searches are selected.

Home Condition Reports will be available if required by the vendor (and there are some agents and members of the public who believe that they are a good idea!) and these will cost a further £200 plus VAT approximately on a 4 bedroom property.

Why should I go with ABM Solicitors?

Choose a Legal Expert backed by an information expert for your HIP

The experienced staff at ABM Solicitors have been in practice for many years, we have an enviable track record in providing sound legal advice and customer satisfaction. Our preferred supplier for providing HIPS are market leaders in providing information in pack format turning out over 500,000 searches a year. They set the standards for accuracy and will use those same principles in providing HIPS, checking and validating every one.

Speed

We aim to deliver your completed HIP in 7 to 10 working days. However, where there are issues, with for example a slow local authority, or problems with obtaining leasehold documentation, we will tell you in advance what the expected turnaround time will be.

Maintain your existing relationships

We won’t force you to use our suppliers, but we have the resources to provide all the elements of a HIP if you require them.

Peace of mind

ABM Solicitors carry £2 million Professional Indemnity Cover our preferred suppliers carry £5 million, and an additional £250,000 Information Accuracy Indemnity, to protect you, our clients, our business and our reputation.