Jeremy Says
GREAT NEWS – JEREMY LEAF & CO TO PROVIDE FREE HOME INFORMATION PACKS (HIPS)!
From 1st August 2007, all properties with four or more bedrooms put on the market for sale will require a Home Information Pack (HIP) including an Energy Performance Certificate (EPC) - and can cost between £300 and £1000. In addition, from 10th September the regulations have been extended to include homes with three bedrooms. But the good news is that, at least initially, Jeremy Leaf & Co will offer to pay for the pack and arrange for it to be assembled!
The government tell us that the introduction of HIPs will make home buying and selling more efficient as well as reduce the number of transactions which fall through as buyers will be able to make better-informed decisions by having key information available at the beginning of the transaction.
For your information, HIPs must contain : -
An Index
Terms of Sale
The Energy Performance Certificate (EPC), which will be produced by an accredited Domestic Energy Assessor (DEA), sets out on a scale from A (best) to G (worst) the impact a property may have on the environment as well as recommendations for making cost-effective energy savings
The EPC will provide a summary of the energy performance of the property, in relation to features of construction, heating and hot water.
Standard searches – local authority enquiries plus drainage and water search
Evidence of title (for registered properties) whereas evidence of title for unregistered properties is compulsory but can be added later if not immediately available.
For new properties – copies of warranties & guarantees
If the property is leasehold, the following must also be included: -
A copy of the lease
Most recent service charge accounts and receipts
Building insurance policy details and receipts.
Copies of regulations made by the landlord or management company
Memorandum and Articles of Association of the landlord or management company New Home Warranty (where appropriate)
The following documents may be included in a HIP but are optional:
Home Condition Report (HCR)
Replies to standard preliminary enquiries made on behalf of potential buyers
Copies of planning, listed building and building regulation consents and approvals
Any guarantees for work carried out
Other searches
A HIP is not required for:-
Properties where there is no marketing (e.g. sale to family member)
Non-residential properties
Seasonal and holiday accommodation
Mixed sales (e.g. shop with flat)
Right to buy and similar sales
Sales of portfolios of properties
Properties not being sold with full vacant possession
Unsafe properties and properties to be demolished.
What do sellers need to do?
The person responsible for marketing a property (which is likely to be the estate agent) must offer a HIP to prospective purchasers while the property is on the market – usually online - and provide with copies of the Pack or any document from it on request and within the 'permitted period'.
The 'permitted period' is either 14 days following the request for copies, or, if later, the day on which a payment for copies is received.
Sellers (or their agents) should also be aware of the possible penalties of failing to comply with the legislation on HIPs. If challenged by enforcement authorities, the onus will be on the seller (or their agent) to provide evidence that the property was already on the market when it was subject to HIP requirements. Enforcement authorities can issue a penalty notice of £200 which could be repeated if the offence is committed again or if thought to be appropriate.
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Created: 17th Aug, 2007 | Modified: 20th Aug, 2007
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