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HIPS Newsflash
The Government
has announced the suspension of Home Information Packs with immediate effect
from 21 May 2010.
Homes
marketed for sale on or after 21 May 2010 will no longer require a Home
Information Pack (HIP).
The Energy
Performance Certificate (EPC) will be retained. Sellers will still be required
to commission, but won't need to have received an EPC before marketing their
property
Home Information Packs
Overview of Home Information Packs - 6th April 2009 update
The Home Information Pack (HIP) regulations affect most
residential property on the market in England & Wales (see exceptions to the HIP
Regulations below). From 6th April 2009 a HIP must be available on the first day
that a property is marketed for sale. The HIP comprises a pack of documents that
is intended to provide the buyer of a property with information regarding the
property.
Information for Sellers
If you are placing your property on the market on or after 6th
April the law requires you to have a HIP available on the first day that your
property is marketed for sale. This means that you must order your HIP in
advance of marketing your property. From 6.4.09 Sellers must complete a Property
Information Questionnaire (PIQ) which must be included in the HIP. Once the HIP
is compiled sellers are entitled to receive a free copy or link to the HIP and
should check it to ensure accuracy.
You can order a fully compliant HIP from CMS for just £225.00
plus VAT for a freehold property and £250.00 plus VAT for a leasehold property.
Simply call us on 0845 060 33 55 to order your HIP immediately.
What the HIP must contain:-
1. An index which lists the documents contained in the HIP and
provides a checklist for the seller, buyer, estate agents, solicitors and
enforcement agencies. The index must state if one of the 'required' documents is
not included, and what steps are being taken to obtain it. The index must be
updated whenever documents are added or removed.
2. The Property Information Questionnaire (PIQ). From 6th April
2009 this questionnaire, which is completed by the Seller, must be included in
the HIP. It contains information about the property that may be helpful to a
potential buyer such as gas and electricity safety, flood risk information, any
previous structural damage, parking arrangements and if the property is
leasehold it will also include a leasehold summary.
3. An Energy Performance Certificate (EPC) or a Predicted Energy
Assessment (PEA) which gives the potential buyer information on the energy and
carbon emission efficiency of a property on an A-G grade rating. The EPC also
provides advice on the most cost effective ways to improve the energy efficiency
of the property. Where the property is a new build which is being sold off-plan
the developer must provide the PEA initially and this should then be upgraded to
an EPC when the home is built.
4. A Certificate or interim Certificate for new build properties
only which shows the sustainability of the home, where it complies with the
standards under the Code for Sustainable Homes, or a nil-rated certifcate where
the property has not been assessed against the code. This will be provided by
the property developer.
5. A Sale Statement which must include the name of the seller,
property address, whether the property is freehold, leasehold or commonhold,
registered or unregistered, whether the property is being sold with vacant
possession, and in what capacity the seller is selling (i.e. as owner or on
behalf of a deceased owner).
6. Evidence of title with registered land this would be a set of
Official Copy Entries from the Land Registry and an Official Copy of the Title
plan. If the property is unregistered the HIP must include an Official
Certificate of Search of the Index Map and an Epitome of Title listing the
documents that provide evidence of the seller's title to the property together
with copies of those documents.
7. Standard conveyancing searches. The HIP must include a
standard local authority search and a water authority search.
8. Leasehold / Commonhold properties. The HIP must include a copy
of the lease or information about the commonhold.
FROM 6TH APRIL THE HIP MUST BE AVAILABLE FROM THE FIRST DAY OF
MARKETING AND MUST CONTAIN AS A MINIMUM ITEMS 1, 2, 3, 4, 5, AND 6 AS ABOVE. IF
ITEMS 7 AND 8 ARE NOT IMMEDIATELY AVAILABLE THEY MUST BE PROVIDED WITHIN 28 DAYS
OF THE FIRST DAY THE PROPERTY WAS MARKETED. THE INDEX MUST NOTE ANY ITEMS THAT
ARE NOT INCLUDED, CONFIRMATION THAT THEY HAVE BEEN ORDERED AND WHEN THEY ARE
EXPECTED TO BE INCLUDED. WHEN THE MISSING DOCUMENTS BECOME AVAILABLE THE HIP
INDEX MUST BE UPDATED.
Optional Documents
The HIP must not contain any advertising or marketing material
but may contain:
A Home Condition Report (HCR) which is a type of survey of the
property commissioned and paid for by the seller.
A legal summary
Home use/Contents Form
Other documents such as specialist searches i.e. mining,
environmental, chancel check
Planning documents relating to the property
Guarantees relating to the property
Additional leasehold documents such as ground rent and service
charge information
Other documents that relate to the property which may of interest
to a potential buyer
Exemptions from the HIP Regulations
·
Private sales where the property has never been marketed i.e.
sales between friends, family members, neighbours.
·
Commercial properties that have planning permission as a business
and that will remain as a business upon legal completion.
·
Residential property that is being converted to business use and
will have business planning use upon legal completion.
·
Mixed commercial/residential sales - i.e. a shop with a flat
above
·
Dual use - i.e. a Doctor's surgery with living accommodation
·
Portfolios of Properties - i.e. a number of properties that are
being sold together as a portfolio
·
Unsafe/Demolition properties - i.e. properties that have been
deemed by the planning authorities as unsafe for habitation or where a
demolition order has been made and where they will remain in that condition upon
legal completion.
·
Property with leases of less than 21 years
·
Properties limited by law as use for holiday accommodation or
occupation for less than 11 months of the year
·
Right to buy and similar sales
·
Properties that are being sold subject to an existing sitting
tenancy where the tenant will remain in the property after completion
·
Four bedroom properties that have been on the market continuously
since 1st August 2007
·
Three bedroom properties that have been on the market
continuously since 9th September 2007
·
Properties with two bedrooms or less that have been on the market
continuously since 14th December 2007
Recommended publication - The HIP Way to Buy and Sell Your House
by Sharon Buthlay (a consumer guide to the HIP - ISBN 1-84528-152-7 - available
from May 2007 from www.howtobooks.co.uk
Click Here to Continue with Home Information Packs
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