The HIPS providers offer complete Home Information Packs (HIPS) and serve as the connecting link between sellers, local estate agents, Home inspectors and local authorities. Under the Housing Act of 2004, a Home Information Pack will have to be provided if a property with vacant possession in England or Wales is put on sale in the open market. In this system, the pack containing several documents related to the property has to be produced and these documents should not be more than three months old at the time when the property is first opened for sale. The HIPS providers combine their services of providing the complete Home Information Packs along-with pre and post sales service to its customers.
All properties that are put up in the market from the time of commencement of this system of HIPS (i.e. 1st August for sales of homes with four or more bedrooms) will need this pack. If the property has been put on sale genuinely before this date, then it won't need the pack for the time being. But the Government might allot a date from which all of the properties will be requiring HIPS, regardless of when it was put up for sale. All properties that are put up on market need to comply with these regulations. If you are selling it without any marketing (i.e. if selling to family members), then HIPS is not required.
HIPS should contain the following documents that can be prepared by using the on-line systems provided by the HIPS providers- Home Information Pack Index, Sale statement, Energy performance certificate, evidence of title, standard searches, and additional documents if the property is for leasehold. Though the Home Condition Report is still not made mandatory, it's better to prepare such a report. It will not only explain all about the location, age and character of the property, but also help the buyer know about any defects and problems which might need attention. This way, any nasty surprises towards the end of the sale can be avoided.
The sellers can hire estate agents, solicitors, separate HIPS providers or do it themselves. It is advisable to use the services of HIPS providers as they would do the job competently, have links with authorized personnel and help the seller even with after sales services. Before selecting your provider for HIPS, do remember to ask certain questions and know about them in detail. You must ask them about the cost of the pack, turn around time for delivering the pack, which form will the pack come in---CD or hard copy, will the information be indemnified in the pack. In addition to this, ask how many solicitors and home inspectors they have, would you have the choice to use your preferred solicitor or surveyor, and so on.
The seller is responsible to pay for the HIPS pack. Some HIPS providers offer the choice of ‘buy now, pay later' option. In this you can buy the pack now, but pay the provider after you close the sale of the property. The cost is between 300 and 600 pounds. The HIPS providers may charge more if your property is complex or if it is very large.
© 2008 Home Information Packs.