News:
Better Buying, Simpler Selling
Buying and selling a property can be a slow, stressful and costly experience which is often prone to delay and failure. The Government have sought to address this by introducing the Home Information Packs - designed to improve the process.
Alll home owners in England and Wales now need to prepare a Home Information Pack before putting their home up for sale. From the 1st October 2008, this will also apply for all rental properties, where the law requires prospective tenants to be given a copy of the property EPC prior to committing to a rental / letting contract or shorthold tenancy agreement. See section specifically for Landlords.
The reality is that 9 out of 10 people say they are dissatisfied with the current buying and selling process of a property as it doesn't always go according to plan. Currently, one in four transactions collapse before contracts are exchanged and one million pounds a day is wasted, mainly due to transactions failing at a late stage.
Buying a home can be like trying to find your way through a legal, financial and administrative maze. Currently, buyers have to make a formal offer before seeing important information about a property such as the survey or land searches.
Selling a home can be stressful and prone to delays and failure under the current system. Currently one in four property transactions break down due to information coming to light after a formal offer has been made. Home Information Packs will reduce this costly inefficiency and make selling simpler.
Details of the current HIP implementation schedule may be found on the Government Home Information Pack website:
www.homeinformationpacks.gov.uk
What is a Home Condition Report?
The Home Condition Report element of the Home Information Pack is a completely new report format which has been developed by the Government with the help of organisations such as the Royal Institution of Chartered Surveyors. It will cover the general condition of the property bearing in mind its age, character and location and highlight any defects requiring action.
The Home Condition Report will be a 'mid range' survey similar in detail to the current Homebuyers' Survey and Valuation Report, but excluding the valuation.
What is an Energy Performance Certificate?
The government is committed to comply with EU Directive 2002/91/EC which aims to promote improvements in the energy performance of buidings.
The EU directive requires an energy performance certificate for all dwellings at the time of sale. The certificate will give prospective purchasers an easy to read guide to the likely energy costs of occupying the property in a similar way that current 'white goods' have an efficiency label.
Domestic energy consumption causes 25% of national CO2 emissions, and heating uses 90% of energy in the home. Improvement in the energy efficiency of our homes is therefore important in reducing our overall emissions.
What will a Home Information Pack contain?
Contents for the Home Information pack have now been finalised as of 29th March 2007.
- Terms of sale
- Evidence of title
- Replies to standard preliminary enquiries made on behalf of buyers
- Copies of any planning, listed building and building regulations consents and approvalsCopies of warranties and guarantees, for new properties
- Guarantees for any work carried out on the property
- Local search replies
- A home condition report and energy performance certificate
Leasehold properties will require additional items
- A copy of the lease
- Most recent service charge accounts and receipts
- Building insurance policy details and payment receipts
- Regulations or covenants made by the landlord or management company
- Memorandum and articles of the landlord or management company
Exclusions from the Home Information Pack regulations
Under current legislation, Home Information Packs will not be required under the following circumstances:
- Properties in Scotland and Northern Ireland
- Private sales where the property is not offered for sale on the open market (eg. to a family member, neighbour, or friend)
- Non-residential property or where homes are in mixed use with commercial property
- Properties sold with sitting tenants and not available for owner occupation
- Portfolios of residential property
- 'Right to Buy' sales by Local Authorities or other social landlords
- Homes held on a lease of less than 21 years
- New homes will be exempt from the requirement for a Home Condition Report providing they are sold with an NHBC, Zurich, or similar warranty
All material produced E&OE