The Home Information Pack will make the buying and selling process clearer by ensuring the key information is available from the beginning.
From 1st August 2007 the law will require that anyone selling their home will need to provide a Home Information Pack to potential buyers.
Why do I need a Home Information Pack?
The current home buying and selling process is wasteful, fraught with delay and gives consumers a raw deal. The big problem is that buyers do not have access to key information when making their initial decisions.
Soon buyers will be able to view a property, read the survey report and check important legal documents before making an offer. Buyers will then be able to negotiate with all the important facts that previously only became available later in the process.
Home Information Packs will help make the process more affordable for first time buyers since they will receive all this information without having to pay for it.
Sellers will be more confident that an offer will lead to completion without the worry of what the survey will bring up.
Solicitors will have less work to do as the key information is available from the start and this should also reduce the time needed to completion.
What is to be included in a Home Information Pack?
A Freehold HIP will contain the following documents:
An Index
This details all the documents included in the HIP.
A Home Condition Report [Optional]
This is possibly the most important document in the Home Information Pack.
An Energy Performance Certificate
This includes recommendations on how money can be saved by improving the energy efficiency of the property.
Drainage and Water Search Details
This shows details of drainage and water supply arrangements. Other searches could be included in the pack, such as environmental and coal mining searches.
A Sale Statement
This is a brief report summarising the property to be marketed. It is normally completed by the vendor and includes the following information:
The property address
Whether the property is freehold, leasehold or commonhold
Whether the property has been registered
The identity of the person or persons selling the property
The status of the property, eg. whether is it vacant
Official Copies of the Land Registry Title
A copy of the official register of the title of the property.
Local Council Searches
These show information about the property which is held by the local authority, for example the East Hampshire District Council.
Copies of Specific Documents
Copies of any Building Regulations Completion certificates. Also any guarantees or warranties pertaining to the property.
