Conveyancing (Residential Property)

Home Information Packs and Energy Performance Certificates Information Sheet


How this affects you

The government introduced HIPs to improve the home buying and selling process and to help cut carbon emissions. Since the 14th December 2007 all properties put on the market require a HIP.

What is a HIP?

A HIP is a pack of information that buyers need relating to the property. The minimum "required" documents (these should be no more than 3 months old at the time the property goes on the market) that must be in a HIP are:

·   Home Information Pack Index

·   Energy Performance Certificate (EPC) which rates the property on its efficiency in the same way as an electrical appliance is rated i.e. on a scale of A-G (A is very efficient)

·   Predicted Energy Assessment for newly built homes. This should be replaced with a full EPC when the home is built

·   Sale Statement

·   Title Documents

·   Local Authority Search

·   Water and Drainage Search

·   Leasehold documents - Lease

·   Index Map Search unregistered land.

·   For new-builds a certificate showing the sustainability of the home where it complies with the standards under the Code for Sustainable Homes or a nil-rated certificate where the property has not been assessed by the Code

·   Property information questionnaire (from 6th April 2009 see below)

There are additional "authorised" documents that "may" be included in the HIP. Upon obtaining your title deeds we will thoroughly inspect all documents to see if any can be included to ensure that a worthwhile, fully comprehensive pack is provided which ought to assist the buyer and help the transaction to proceed more swiftly in its early stages.

Temporary first day of marketing ends 5th April 2009

Marketing can only start without a HIP being available if it has already been ordered and paid for and is expected to arrive within 28 days. Our average turnaround for a HIP is 72 hours.

As from 5th April 2009, this exemption will not apply and a HIP will need to be available from day one. Having said this, the Government timetable for this has slipped several times already and you should speak to us to check the current position before visiting your estate agent for the first time.

From 6th April 2009 onwards,

1)   There must be a HIP available when marketing starts. Marketing with an incomplete pack may take place if documents have been requested and it is expected they will arrive within 28 days of the start of marketing. This exemption only applies to searches/leasehold information and evidence of title for unregistered properties

2)   The HIP must include a Property Information Questionnaire. This will include information about flood risk, gas and electricity safety, service charges, structural damage and parking arrangements/access.

How long is a HIP valid for?

There is no requirement for a seller to renew their HIP so long as the property they are selling is continuously marketed for sale. If the seller decides to stop marketing their property, they can go back on the market with the same HIP provided they do so within 12 months of the first point of marketing. Even after one year, if a property is taken off the market where an offer has been accepted only for the sale to fall through, the seller can go back on the market with the same HIP as long as remarketing starts within 28 days of the sale falling through.

If the property is not remarketed within 28 days of the sale falling through then the HIP will need to be re-started. An EPC must be no older than three months old at the time it is included in a Pack at the first point of marketing. The EPC will be valid for as long as the property is on the market. If the property is removed from the market and returned to the market more than a year after the first point of marketing, a new EPC must be produced prior to return to the market.

There is no requirement for any component of the HIP to be updated whilst the property is marketed for sale.  It is up to the seller and buyer to negotiate any update of any part of the HIP.  So far as buyers are concerned, if they have a mortgage, it is a requirement of the Council of Mortgage Lenders Handbook that all searches must not be more than 6 months old at completion.  If the searches are out of date the buyer will need to update the searches unless they can convince the seller to do so.

There are a number of exemptions

·   Properties where there is no marketing (e.g. Private sales to a family member, neighbour or friend etc. where no agent is involved.

·   Non Residential Properties

·   Seasonal and holiday accommodation

·   Mixed sales (e.g. shop with flat; farm with farmhouses etc)

·   Right to Buy and similar sales

·   Sales of portfolios of properties

·   Properties not being sold with complete vacant possession

·   Unsafe properties and properties to be demolished

Why Use Us
Many HIP providers are using personal searches rather than official searches issued by the Local Authority and Water Board. Official searches are acceptable to all lenders and solicitors. The problem with personal searches is that they are not accepted by a number of lenders, which means that delays occur whilst the Buyer’s solicitors make additional searches.

We can provide complete, accurate easy to understand and competitively priced HIPs using official searches within one week of receiving your instructions. We can undertake the conveyancing to ensure a smooth transaction from start to finish.  When we take your instructions on the HIP, we also supply and arrange for completion of the relevant property forms to ensure that once a sale is agreed matters can progress quickly. A truly "one-stop" service.

The current costs for a HIP are shown on the final page of these notes.

Energy Performance Certificates (EPC)

From 1st October 2008 All homes being sold for occupation will need an Energy Performance Certificate (EPC) and this must be given to the buyer regardless of the date the property was first marketed. Contracts must not be exchanged until a copy of the EPC has been given to the buyer or the solicitor/conveyancer. The penalty that could be imposed on the seller by trading standards officers is £200. The average local cost for obtaining an EPC is £75 plus VAT


As from 1st October 2008 an EPC (but not a Home Information Pack) will be required for two other types of property transactions: -
 
1.   A letting of residential property -
 
If you let a property on or after the 1st October an EPC will have to be provided to the prospective tenant.
 
2.   A lease or sale of commercial property -
 
If a "non residential" property is sold, leased (or a lease is assigned) on or after the 1st October then again an EPC must be provided by the seller/landlord to the buyer or tenant.
 
In both cases the EPC will last for 10 years
 

Our Total Costs inclusive of VAT at 15% in the following areas are:

Freehold Leasehold
Poole £303.76 £329.76
Bournemouth £319.76 £345.76
Christchurch £256.76 £282.76
Weymouth & Portland £290.76 £316.76
North Dorset £296.76 £322.76
East Dorset £289.76 £315.76
West Dorset £260.76 £286.76
Purbeck £328.76 £354.76


Prices correct as at 13/01/09 subject to change in accordance with local authority search fee changes.

If you are thinking about selling and would like further information please contact Natalie Clarke on 01202 672598 or e-mail nclarke@dangibau.co.uk
 

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