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HIPS - Home Information Packs
The government announced on 22 November 2007 that from 14 December 2007 all homes placed on the market for sale will require a Home Information Pack. The pack will contain basic information about the home such as the name of the seller and the address of the property being sold; whether it's freehold or leasehold and whether the title is registered at the Land Registry.
The pack will also contain an Energy Performance Certificate or a Home Condition Report. The Certificate tells you how energy efficient the home is on a scale of A to G (A being the most efficient with lowest running costs), and any impact the home has on the environment. Advice is included on how to improve energy efficiency.
The Home Condition Report (if included) gives a condition rating from 1 to 3, where 1 is the best, so that you know if any repairs are required.
The pack may also include forms completed by the seller such as the Home Use Form or Seller's Property Information Form. These forms will give information on boundaries, guarantees, sharing with neighbours and planning matters. A Home Contents Form or Fixtures Fittings and Contents Form will detail items that are included with the sale.
The pack should also include official copies from the Land Registry (if the land/property is registered) of the Register and Title Plan which provides a brief description of the property and whether it is freehold or leasehold and the plan depicts the location and boundaries.
A Legal Summary may also be included in the pack. This is a legal adviser's view of the contents of the pack to enable you to identify any issues.
Flats are usually sold leasehold so a copy of the Lease and details of the ground rent and service charges will also be included.
Other items to be included will be a copy of a water and drainage search and a Local Search. This search is carried out with the local authority to ascertain details of planning permissions, and other issues affecting the property or proximity. There may well be copies of further searches such as coal mining searches if the property is in an area known for old mines, chancel and environmental searches. If this are not included you can ask your solicitor to carry these out for you although you will have to pay for these yourself.
Cost
The pack will not cost a buyer anything. You should be able to obtain a copy from the estate agent selling the property you are interested in. However, the agent may make a charge to cover the cost of photocopying and postage.
As a seller you will incur costs in providing the information which will vary from area and home to home. Coole+Haddock can provide you with cost information for your property. We subscribe to the Law Society HIP Scheme and will be able to obtain the majority of the information quickly online.
How long does the pack last
If a property is marketed continuously there is no need to update the pack unless the information becomes out of date. If marketing of the property stops and then starts again, then you would normally need to assemble a new pack, although there are exceptions. As a temporary measure (as at 22 May 2007) Energy Performance Certificates can be up to 12 months old when the property is put up for sale.
More Information
Please talk to a member of the conveyancing team if you want to know more and why not take a look at www.homeinformationpacks.gov.uk
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