|
|
|
From 1st June 2007 all home owners in England and Wales will need to arrange for a Home information Pack to be prepared before putting their homes up for sale.
The Government is introducing Home Information Packs to improve the process of buying and selling a home. Currently this can be a stressful and costly experience which is prone to delay and failure.
As part of the Government commitment to making buying and selling homes easier, THE Housing Act 2004 has introduced a legal obligation on home-owners to have a Home Information Pack available when marketing homes for sale.
Home Information Packs will provide important information to prospective purchasers at the very start of their interest in a new home, giving increased transparency on key issues and meaning any offer to purchase is based on an informed decision.
As part of our ongoing commitment to our clients, we at Whitney’s are taking steps now to ensure we are ready for this new legislation so that you, the client are properly advised and that selling your home is as easy as possible.
If you're unsure what a Home Information Pack is, or what Home Information Packs contain, we've answered some frequently asked questions in the following information:
"9 0ut of 10 consumers are dissatisfied with
the current home buying and selling process"
This basic guide provides answers to some questions asked by consumers about Home Information Packs. |
| 1. |
What is a Home Information Pack and how will it help the home-buying and selling process ?
Home Information Packs will be introduced in early 2007 to improve the home buying and selling process across England and Wales.
Home Information Packs will be a set of documents, which will provide home buyers and sellers with key information about the property that they may wish to buy, such as Land Registry searches, copies of the deeds to a property and a Home Condition Report (see Q3 for more details on contents of the pack).
Currently this information is not available until after an offer has been negotiated. This often causes sales to be renegotiated or collapse altogether. The Home Information Pack will be provided by sellers to enable people to make informed decisions about what they intend to buy, based on reliable information. |
| 2. |
When will a Home Information Pack be provided ?
Most residential property sales will require a Home Information Pack.
A Home Information Pack will not be needed for:
- Non-residential properties, such as shops
- Mixed commercial and residential properties, such as shops with flats above them
- Sales of tenanted properties, where a tenant is to remain in residence
- Leases of less than 21 years
|
"Consumers should not be expected tobuy and
sell homes without access to information up front"
This basic guide provides answers to some questions asked by consumers about Home Information Packs. |
| 3. |
What documents will be in Home Information Pack ?
The pack will contain all the documents usually required when buying and selling a home, plus a new document called the Home Condition Report.
This pack will include:
- A sale statement – describing the property being sold
- Forms the seller can sue to give more information about the property and fixtures and fittings
- Evidence of title – from the Land Registry or copies of the deeds to the property
- Replies to standard searches – such as planning permissions, road schemes, water and drainage
- Warranties and guarantees – for building work
- A Home Condition Report including how energy efficient the property is – see question 4 below
For leaseholders, the pack will also include:
- The lease
- Details of the landlord or managing company
- Regulations made by the landlord or management company
- Details of service charges and recent requests for payments for ground rent and insurance
- Information about current and planned works
|
| 4. |
What is a Home Condition Report ?
This report originally intended for inclusion in the HIPs Pack is currently being reviewed by the government and has been suspended pending this review. |
| 5. |
Where can I find a Home Inspector ?
Most sellers will use the services of a Home Information Pack provider, who will commission a Home Inspector on a seller’s behalf. Sellers can also commission a Home Inspector direct.
Both Home Information Pack providers and Home Inspectors can be found through high street traders such as lenders and estate agents, through national, local and online advertising or via a public register of Home Inspectors, which will become available when the scheme becomes live in 2007. |
"The current process of buying and selling costs consumers
and industry 1 million a day in wasted costs"
This basic guide provides answers to some questions asked by consumers about Home Information Packs. |
| 6. |
Who will compile my Home Information Pack ?
A number of organisations on the high street and online are already offering Home Information Packs to sellers.
Many more major and smaller organisations from the property industry will start providing the packs before they become compulsory in 2007. Sellers will be able to shop around for a good deal in the market place. |
"You don’t have to wait until 2007 to benefit from Home Information Packs"
This basic guide provides answers to some questions asked by consumers about Home Information Packs. |
| 7. |
How much will a pack cost ?
It is expected that the cost of preparing a Home Information Pack for an average home will be around £600-£700. But this is not all new costs – most of the contents need to be provided already under the present process.
The only new cost to the process is the Home Condition Report, which is estimated to be around £350 for an average home.
One of the benefits of this is that the Home Condition Report will avoid the wast of multiple surveys caused where more than one person is interested in buying the same property.
Refer to Q4 for current position on home condition reports |
"The Home Information Pack will help all parties to commit
more quickly, thereby reducing the risk of sales failing"
This basic guide provides answers to some questions asked by consumers about Home Information Packs. |
| 8. |
When will Home Information Packs become compulsory ?
The Government intends to make them compulsory from 1st June 2007. The start date will be widely advertised through a Government public awareness campaign during 2006. |
This information is supplied by the office of the deputy prime minister, click here to view the website
For more information about the introduction of Home Information Packs see:
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON YOUR MORTGAGE
|
|
|
|
|
