HOME INFORMATION PACKS – THE NEW REGIME

Legislation for 2007

From 1st June 2007 sellers will not be able to market a property unless they are able to provide to a genuine applicant a Home Information Pack (“HIP”).

The HIP will contain legal documentation including copies of  local and drainage searches, the seller’s title, Home Use and Home Contents Forms, an Energy Performance Certificate (“EPC”), and any guarantees and relevant planning consents, etc.  For leaseholds, a copy of the lease and documentation relating to management of the property will be required. 

Until recently, the HIP would have had to contain a Home Condition Report (“HCR”) but that is no longer necessary, although it can be included if sellers want.    

Today’s Best Practice

Amongst solicitors and agents dealing regularly with higher value residential properties, it is already considered best practice to produce before marketing a pack of documents which, with the exception of the EPC, includes everything required by the legislation, and indeed normally goes much further.  The reason is that sellers want to avoid any delay on the part of the prospective purchaser by providing at the outset the answers to almost every question that the purchaser’s solicitor might raise.

Energy Performance Certificate

The new element in all of this is the requirement for an EPC.  This is a detailed examination of your home’s energy efficiency and environmental impact.  It is similar to the energy ratings given for new fridges and freezers, and will give home buyers and sellers A to G ratings for their home’s energy efficiency, in order to help cut carbon emissions and fuel bills. 

What Is the Best Advice

Sensibly, all sellers should address legal issues as early as possible.  If you are thinking of selling in the foreseeable future, do not wait until the day the property is marketed before asking your solicitor and your estate agent to work together to compile the necessary documentation – sort it out in advance to ensure that all potential problems are resolved and all documentation can be delivered to the purchaser’s solicitors as soon as you agree a sale.  From 1st June 2007, this will in any event become compulsory. 

 

Michael Macartney
Solicitor
Property Plus