Home Information Packs
HIPs - Make SYJ your first port of call
01/08/2007
Traditionally clients have instructed us after they have placed their property on the market and had an offer accepted. They will now need to get used to making us their first port of call when they are considering selling their property.
Like them or not, Home Information Packs (HIPs) are with us from today, albeit on a limited and phased basis.
The much vaunted legislation is a shadow of its former self. As originally conceived a seller would not be able to market a property unless in possession of a HIP which would include, amongst other components, a Home Condition Report (HCR). An HCR is no longer a required component but an Energy Performance Certificate (EPC) is. Full details of the other required components can be supplied but they include:
For all properties:
• Local Authority searches and the results of water and drainage enquiries
For all properties where part of the property is a sub-divided building not sold with vacant possession:
• Copies of leases, tenancies or licences
For registered titles:
• Land Registry Official copy entries of the title and title plan and of documents referred to in the register
For unregistered titles:
• An official search of the Land Registry Index Map
• Deduction of the title documents
For leasehold and commonhold properties:
• Other legal documentation and management information.
From today a pack will be needed for every residential property with 4 bedrooms or more (unless it is exempt). However until 31st. December 2007 a property can be marketed once the pack has been ordered - i.e. the seller does not need to be in possession of it before marketing.
Some properties are exempt. A full list of exempt properties can be provided but they include business properties, residential properties attached to a business property and properties being sold with sitting tenants.
SYJ are ready willing and able to create a Pack using the Law Society branded web based system at the price charged to us. The price charged to us will depend on various factors. An estimate can be quickly provided on receipt of some basic information. There are finance options available.
As intimated above this cost does not include anything for our time involved in creating the pack which we would estimate at £70 plus VAT. Until 31st. December 2007 we intend to operate a dry run and make no charge for our own time to existing clients who already use our conveyancing services. We will make a charge for our own time to others, but if we are instructed on any sale subsequently, we will reduce our conveyancing fees by this amount.
It is not yet known how long the production of the Pack will take. It is thought that, at least initially, the EPC will be the delaying factor. There is still a significant shortfall in the required numbers of qualified assessors, particularly in London and the South East. This probably accounts for the Government's decision to phase in HIPs and to allow properties to be marketed once the HIP is ordered until 31st. December 2007. However it is to be hoped that the Pack will take no longer than 28 days to complete. In some areas it may be much quicker.
The next phase (for 3 bedroomed properties) is anticipated to commence on 1st. October 2007 and the final phase (for all properties) on 31st. December 2007.
Please contact Helen Wenham if you have any queries or wish to order a HIP.
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