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Abolition of HIPs- 21/05/2010
The abolition of Home Information Packs (HIPs) will help free up the housing market, but sellers should still spend time putting together a sales pack of vital documents to help speed through a sale, according to a leading residential property solicitor.
“Home sellers are now no longer required to provide a HIP to buyers although, in the interests of keeping an eye on energy efficiency, the requirement to provide an Energy Performance Certificate (EPC) remains,” says Karen Grimshaw, Associate in the Residential Conveyancing Department at West Midlands’ law firm FBC Manby Bowdler LLP.
“It was argued that HIPs would speed up the home buying and selling process but in reality they often had the opposite effect,” says Mrs Grimshaw.
“Before the introduction of HIPs, the bulk of the conveyancing expenses fell on buyers, and sellers would only incur expenses on conclusion of the sale. However, after HIPs were introduced, sellers found themselves having to fork out up front expenses on two compulsory Local and Drainage searches as well as the EPC.
According to Mrs Grimshaw, the abolition of HIPs will see more properties coming on the market, but she warns that sellers still need to think about the information they may be asked to provide to buyers and their mortgage companies who will remain cautious.
“Judging by the number of potential sellers we are already advising, who have been waiting for this moment to sell their properties, there will be a significant number of new homes coming onto the market, thanks to the abolition of HIPs.
“Although sellers are still under no obligation to disclose adverse information about their properties to buyers, any prudent solicitor acting for a buyer will ask for a number of documents relating to the property,” says Mrs Grimshaw.
“The earlier in the sales process which the seller can put together a “sales pack” of relevant documents, which their solicitor can supply if required, the more likely the sale is to proceed smoothly and not slow down or even stall.
“With more properties on the market it is even more important for sellers to do everything they can to retain a buyer.”
FBC Manby Bowdler LLP has prepared a short check list of documents which home sellers should locate.
1. Planning permissions, building regulation approvals and building regulation completion certificates, and, where applicable, covenant approvals, relating to alterations and extensions or other building works that have been carried out at the property.
2. NICEIC certificate / building regulation approvals relating to electrical works carried out at the property post 1st January 2005.
3. FENSA certificates for double glazing installations carried out post 1st April 2002.
4. Gas Safety Register certificate for any gas installation works.
5. Guarantees or warranties relating to the property, e.g. NHBC or similar, timber and damp treatment, roof works, double glazing/conservatories.
6. Title deeds if the property is unregistered. Even if the title to property is registered a pack of pre-registration papers may contain relevant documentation.
7. If the property is a leasehold property, the lease, the last receipt for payment of ground rent and/or service charge and management accounts for the last three years.
“Remember that when selling a home you still need a EPC but you do not have to rely on your estate agent to supply it. Shop around. In many cases your solicitor will be able to provide it more cheaply,” concludes Mrs Grimshaw.
With 39 partners, FBC Manby Bowdler is the fourth largest law firm in the West Midlands. The firm has offices in Wolverhampton, Willenhall, Telford, Shrewsbury and Bridgnorth.