The traditional method of buying & selling UK property
Traditionally the responsibility has rested with the buyer of a property to get a comprehensive survey carried out by a RICs qualified surveyor. This may lead to the surveyor finding building or structural complications. Consequently, this may result in a number of scenarios:
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The buyer withdraws their interest
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The buyer adjusts the offer depending on the survey report
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Tradesmen being called in to carry out work on the property
How will HIPs change this?
From 1st August 2007 the onus will be on the seller to arrange a home inspection by a qualified Home Inspector before the property goes on the market. This means that major work and repairs will be completed before a property reaches the market. It also means the property will go on the market at a price that is more or less representative of the property in good order.
Access to the HIPs report
The Home Inspection Pack for a given property will be in the public domain. This means that estate agents will hold HIPs reports on properties they are selling. It also means that a prospective buyer can review and access the condition of a property before viewing, simply by reading the HIPs report in the estate agent's office.
What's Included in a Pack The pack must contain:
- Terms of sale
- Evidence of title
- A property information form
- A fixtures and fittings form
- Planning consents, agreements and directions and building control certificates
- Warranties and guarantees for new properties and for any work carried out on the property
- Replies to standard searches
- An Energy Efficiency Certificate
HIPs for new build properties will not require a Home Condition Report if the property has an NHBC (National House Building Council) certificate or equivalent.
Additionally, leasehold properties will need to provide:
- A copy of the lease
- Recent service charge accounts and receipts
- Current and planned future works
- Buildings insurance policy details and payment receipts
- Regulations made by the landlord or management company
- Memorandum of articles of the landlord or management company
Other documents which may be included:
- A Home Condition Report (HCR)
- A summary or explanation of any pack document
- Information identifying the property including a description, photograph, map, plan or drawing of the property.
Hips for new build properties will not need a Home Condition Report if the property has an NHBC certificate or similar. |
