Home Information Packs

The Government is planning to introduce compulsory “Home Information Packs” (HIPs) in 2007. Under these new rules, no one will be allowed to market their property unless they have prepared a HIP. The HIP will need to include a number of documents including details of the legal title, replies to standard legal forms, legal searches and an Energy Performance Certificate (EPC).

The intention is that the HIP will be given to any prospective buyer as soon as they express an interest in the property. This will ensure that the buyer has all the relevant information before making an offer for the property. It is hoped that this will help speed up the conveyancing process and avoid buyers having to withdraw their offer half way through a transaction due to discovering a defect in the property or title.

There is concern that if the HIP is not prepared by a reputable firm of solicitors, the HIP provider will not identify and deal in advance with any potential problems, for example, lack of planning permission for an extension. If a defective HIP is given to the buyer, the buyer’s solicitor will eventually discover the defect but probably not until the sale has been going for a few weeks. The defect could lead to the buyer withdrawing from the purchase meaning that the seller will have to find a new buyer and any future sale could be further delayed whilst the defect in the HIP is corrected. This delay could result in the seller losing the property they wanted to buy.

If you are planning to put your property on the market after these rules have come into force, you will need a HIP. Who better to prepare this for you than us? We can put the legal pack together for you and even organise the EPC.