‘HIPs Scrapped – The Practical Impact’
In one of the first moves relating directly to the property market, the new coalition government has scrapped the controversial Home Information Pack (HIP) requirement from new sellers.
What is the practical impact for estate agents and property sellers?
Firstly, only homes marketed for sale on or after 21st May 2010 will no longer require a Home Information Pack (HIP). The suspension is not retrospective and so properties on the market on or before 20th May, either in breach of the HIP regulations or with ‘1st day marketing HIPs’ (i.e without searches, title or an Energy Performance Certificate) must still be completed.
YET virtually in contradiction – a Seller or Estate Agent is no longer under a duty to provide a copy of the HIP to potential buyers BUT commentary is that if there is an advantage in keeping the property move going forward then clearly they would be wise to
Can Buyers still rely on a HIP after the suspension date? Yes. If the HIP was compliant with the regulations there is no reason why a buyer should not be able to trust it.
Energy Performance Certificates (EPCs) Remain Unaffected
Despite the suspension of HIPs, a Seller will need to have ordered, but not necessarily received an Energy Performance Certificate before legal marketing can start.
Once received it continues to be the rule that it must be provided to potential buyers at the earliest opportunity and before entering into a contract to sell the property. The Seller and Estate Agent must use all reasonable efforts to ensure that the EPC is available within 28 days of the property going on the market.
The duty to provide an EPC falls on either the seller, in the case of a building being sold, or the landlord / letting agent, in the case of a building being rented. In the case of new buildings the duty to provide an EPC falls on the builder.
Estate Agents will have to include energy information in written sales particulars, as was the case before the suspension of HIPs. They must do so as soon as the energy information becomes available. Enforcement of these requirements and financial penalties is the responsibility of Trading Standards Officers.
However, following the suspension of HIPs, all EPCs will now be valid for 10 years.
For more info please visit:
http://www.communities.gov.uk/housing/buyingselling/homeinformation/homeinfopackquestions/
4 Comments on “‘HIPs Scrapped – The Practical Impact’”
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
It is worth noting that from this point onwards conveyancing for purchasers will become more expensive for two reasons : 1) the buyer will now have to pay for the cost of the local authority and drainage searches ( at an average cost of about £200 ) 2) As we see more speculative sellers enter the market abortive transactions will increase. Many speculative sellers pull out at the last moment of transactions leaving buyers to foot unnecessary and wasted costs ( including the aforementioned searches )
Nice content. Thank you for your information.