HIPS Seller Packs: A Must For Sale Of Property
Home information packs, also known as HIPS Seller packs, were made mandatory for homes with four or more bedrooms on 1st August 2007 and extended to three bed roomed properties from 10th September 2007 in England and Wales. In December 2007, it was made applicable for one or two bed room houses too. Though the introduction of these packs have slowed down the process of selling and reduced requirements, the Government justifies its action by citing that this would reduce cases of abortive sales and problems that rise after sales.
What Does It Contain?
The HIPS Seller Packs contain many property related documents such as- Title deeds, Guarantees and warrantees, sales statement, Local Authority and drainage searches, energy performance certificates, home condition report etc. If the property is on leasehold, then these additional documents are required- Copy of the lease, recent service charge receipts, contact of landlord or Management Company, regulations that apply and building insurance certificate. The cost of HIPS seller packs are in the range of 300 to 600 pounds. If the property is very large or complex, the cost would be increased accordingly.
Reaction To The HIPS Home Information Packs
The Royal Institute of Chartered Surveyors (RICS) initially started proceedings against the Local Government because in their view, the department had failed to carry out full consultation on HIPS. But now RICS is actively involved in providing courses for domestic energy Assessment and courseware for Home Inspector & Domestic Energy assessor.
The property industry is largely against these changes brought about by the introduction of HIPS Seller Packs. They fear that the up-front cost involved in preparing the pack may restrict some home owners to sell their property. This will bring depression in the housing market. But the Government insists that the new system will be beneficial for the home-owners in the long run.
Spicehaar, Britain's largest real estate agency initially called for a boycott of the HIPS Seller Packs, but has now revised its position and is in full support of this system. The Council of mortgage Lenders has reported that its members do not think that the consumer benefits, as perceived by the government, will be achieved. They also believe that the cost is too high. But the Government states that the most of the documents were required even previously for sale of property, so the extra cost burden is very low.
HIPS Providers
The HIPS Seller Packs are provided by qualified HIPS providers, which have end to end processing available. The package is backed by pre and post sales support, quality control and service levels. The providers have experienced property professionals for the homeowner's convenience. They cater to the homeowners through fully on-line systems providing HIPS seller packs, combined with case tracking and management reporting.
The HIPS Seller Packs, if not produced or provided incomplete may cost a fine of 200 pounds. The real estate agents who do not comply with its regulations may face a ban on agency services. Thus, if anyone plans to sell property in England and Wales, he has to get the HIPS Seller Packs ready with the help of HIPS providers.