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HIPs
On 1st August 2007, it became an offence to put your property on the market (if it has four or more bedrooms) without first ordering a Home Information Pack (HIP).
From 10th September, this regulation was extended to include three bedroom properties and the rest of the market will be phased in soon after. By making sellers responsible for bringing together all the legal and other documentation relating to a sale upfront, rather than waiting for the buyer’s solicitor to set the ball rolling, the Government hopes to make the selling and buying of property quicker and more certain than ever before.
This is all very well, but sellers have long enjoyed the benefits of ‘no sale – no fee’, and certainly no upfront costs when putting their home on the market. This is likely to cause a huge shake-up in the property industry.
So, what's included within the HIP?
- Home Information Pack Index
- Energy Performance Certificate
- Sale statement
- Standard searches
- Evidence of title
- Additional information for leasehold and commonhold sales, where appropriate.
Optional information can also be provided, such as any guarantees for the property, a fixtures and fittings list etc.
Expected cost of HIPs to property sellers... up to £600!
However, we have the solution! We have known for quite some time that HIPs were on their way and we have had plenty of time to think about a solution.
So here it is…
If we are instructed on a sole agency, we will provide the HIP for FREE and on a no sale - no fee basis. Unlike most of our competitors, we will not be asking for any upfront payments or offering any deferred payment schemes. Quite simply, we will arrange everything for you before putting the property on the market and our usual sole agency fee is only due when the sale has gone through. If you don’t move, you don’t pay! So, if you’re thinking about selling your property, or you know someone who is thinking about selling, be sure to contact us to avoid any nasty and unnecessary costs.
- NO deferred payments
- NO increased fees
- NO upfront costs
- NO sale - NO fee
- NO catches
HIP FAQs
What will a HIP need to contain?
The HIP will contain all of the documents and searches usually supplied to a buyer as the sale progresses. These are now, however, provided in advance by the vendor at the time the property is first marketed and before a sale offer is agreed. The HIP will also contain a new type of report stating how energy efficient the property is. This will be called an Energy Performance Certificate. These are all mandatory contents of the HIP.
In addition the HIP can also include an optional home condition report (HCR) The report is only concerned with construction defects and building condition. Home condition Reports must be complete objective and satisfy relevant codes of practice and standards These were also to be mandatory but the Government have now decided they may be regarded as an optional extra at least for the time being.
Who will pay for the HIP to be prepared?
If we are instructed on a sole agency, we will provide the HIP for FREE and on a no sale - no fee basis. Unlike most of our competitors, we will not be asking for any upfront payments or offering any deferred payment schemes. Quite simply, we will arrange everything for you before putting the property on the market and our usual sole agency fee is only due when the sale has gone through.
Can I sell my home without a HIP?
Whether selling privately or through an estate agent, all properties put on the market for sale on or after 1 June 2007 must have a HIP by law. You cannot market your home, even informally, without a HIP.
How long will it take to compile my HIP?
We have access to a solution driven by innovative technology and underwritten by service guarantees. For a registered freehold title we would expect to complete the HIP within five days of receiving your instruction to sell.
What are these changes intended to achieve?
The intention of the legislation is that any potential buyers of any property coming to the market after 1 June 2007 will have access to a pack containing all of the information they or their advisers may need to see before an offer is made and accepted. All apparent defects will be declared, all issues aired and all problems identified i.e. more transparency from day one with all sales agreed on a fully informed basis.
How do I obtain a HIP?
If you are serious about moving, then the answer is simple. Leave it all to us. We will do everything for you as part of our service to you.
How much will all this cost?
It will cost you NOTHING to put your house on the market. Only our usual sole agency fee will be payable on completion of the sale, in the usual way.
What have I got to lose?
If you instruct us to sell your property then not much! If you instruct another agent it could cost you your dream move!