HIPs
info
From the 1st August 2007 the government
backed HIP (Home Information Pack) scheme began. A Hip
is produced by a qualified Home Inspector on behalf
of a property seller.
Buying & selling UK property prior to 1st
August 2007
Traditionally the responsibility has rested with the
buyer of a property to get a comprehensive survey carried
out by a RICs qualified surveyor. This may lead to the
surveyor finding building or structural complications.
Consequently, this may result in a number of scenarios:
-
The buyer withdraws
their interest
-
The buyer adjusts the offer
depending on the survey report
-
Tradesmen being called in to
carry out work on the property
How did HIPs change this?
From 1st August 2007 the onus was placed with the seller
to arrange a home inspection by a qualified Home Inspector
before the property goes on the market. This means that
major work and repairs will be completed before a property
reaches the market. It also means the property will
go on the market at a price that is more or less representative
of the properties condition.
Access to the HIP reports
The Hip for a given property will be in the
public domain. This means that estate agents will hold
Hip reports on properties they are selling. It also
means that a prospective buyer can review and access
the condition of a property before viewing, simply by
reading the Hip report in the estate agent's office.
What's Included in a Pack? The pack
must contain:
-
Terms of sale
-
Evidence of title
-
A property information form
-
A fixtures and fittings form
-
Planning consents, agreements,
directions and building control certificates
-
Warranties and guarantees for
new properties and for any work carried out on the
property
-
Replies to standard searches
-
An Energy Efficiency Certificate
HIPs for new build properties will
not require a Home Condition Report if the property
has an NHBC (National House Building Council) certificate
or equivalent.
Additionally, leasehold properties will need
to provide:
-
A copy of the lease
-
Recent service charge accounts
and receipts
-
Current and planned future
works
-
Buildings insurance policy
details and payment receipts
-
Regulations made by the landlord
or management company
-
Memorandum of articles of the
landlord or management company
Other documents which may
be included:
-
A Home Condition Report (HCR)
-
A summary or explanation of
any pack document
-
Information identifying the
property including; a description; photograph; a
map; and a plan or drawing of the property.
