Home Information Packs: more information
Published: 3 August 2007
By MoneyhighStreet Staff Leave a Comment
Updated: 3 April 2009
Following our latest article about home information packs, we have been approached by a number of people seeking more information, so we thought we’d provide these facts for you.
When reading this information, remember that from 6 April 2009 a HIP must be in place, not just ordered, before houses can be put up for sale.
How long are home information packs valid for?
HIP’s are valid indefinitely for the current owner, so if it takes you nine months to sell your house, you won’t need to redo your pack.
However elements of the pack such as local authority searches and the energy performance report are subject to time constraints, as we discuss now.
Do I need a new HIP if my house sale falls through?
As long as you re-market the house within a year of the initial marketing date then you don’t need a new HIP.
If your sale falls through more than a year after the date in which it first went on the market, you must re-market it within 28 days to avoid preparing a new HIP.
How long are the local searches in my HIP valid for?
This is an interesting question as they is no requirement to renew the local authority searches in your HIP even if it takes you a year to sell your property.
The problem for the buyer is, that most lenders will only offer a mortgage when local authority searches are less than three months old.
So if it takes more than three months to sell your house, either the buyer has to pay for new searches or they might force the seller to pay for new local authority searches.
In either case this an area of the home information packs that may cause additional confusion during a transaction rather than reduce it.
How long is the energy performance certificate (EPC) valid for?
The energy performance certificate is valid for one year so if it takes longer than a year to sell your house, unfortunately you will need to pay for another energy assessment.
Can I transfer my home improvement pack if I sell soon after buying?
The seller owns the HIP, however there is nothing stopping the buyer from asking for it during the transaction. After all, the seller has no further use for it as long as the sale succeeds.
In fact it would be beneficial for the house buyer to keep the report, particularly the EPC as it will list any improvements that the energy assessor has suggested as part of his survey, and would help the new owner become more energy efficient.
So this raises an interesting question if you sell your house soon after buying it. Most of the information within the HIP will still apply, however you will to take advice about this to ensure full compliance within the law.
Do I need a HIP if I sell my house to a relative or friend?
HIPs are required if the house is marketed. If you arrange a private transaction without marketing the property then a HIP is not required.
If you sell your house yourself without an estate agent, such as via an Internet web site, or property exchange then you are still marketing the property and you therefore need a HIP.
What does a HIP actually look like?
You can see a sample home information pack. Your actual pack may look different from this sample, but it gives you a good idea of how information about your house will be presented.
This is an example of an energy performance certificate.
