Questions & Answers
When will Home Information Packs become compulsory?
Home Information Packs are now required by law on all sales of all residential property in England and Wales.
Do I need to wait for all parts of the HIP before i market my property?
A home must be marketed with a HIP at the time the property is put up for sale. For a transitional period, sellers can market their homes with a HIP that includes the Energy Performance Certificate (EPC), sale statement, evidence of title and index; and evidence that other documents have been commissioned and will be included in the pack as soon as practicable (and certainly within 28 days).
How long will my HIP be valid for?
The Home Information Pack is valid whilst the home is continuously marketed for sale. There is no duty to refresh the documents in the HIP where the property is re-marketed by the same seller within one year of the original marketing date.
The main time-sensitive items in the Home Information Pack are the local searches. These are generally acknowledged to be valid for six months. The majority of sales complete within six months under the current process and the Government expect the Home Information Pack to shorten the time between offer acceptance and exchange of contracts.
It would be beneficial to have a new Energy Efficiency Certificate issued if the property has had improvements that affect the energy rating of the home, since the original one was issued.
The Home Condition Report must be no more than three months old when marketing starts, but there will be no duty to update it once marketing is underway. The Report provides a ‘snapshot’ of the condition of a home at the time it was written. The condition of a home does not normally change quickly unless there is an intervening event such as fire or flood, so the Home Condition Report should be reliable for around six months.
Are Home Information Packs needed at auctions?
Yes. People buying at auction need reliable information just as much as anyone else.
The Government says that mandatory Home Condition Reports “remain on the table”. Does this mean that if Home Condition Reports don’t work on a voluntary basis they will make them mandatory?
The Government is working with stakeholders to facilitate the voluntary take up of the full Home Condition Report. The Government have set out the steps that it will be taking to facilitate the voluntary take up of HCRS. Mandatory Home Condition Reports will remain an option if the industry fails to make a success of the take-up of voluntary Home Condition Reports.
If the Home Condition Report is being commissioned by the seller, how can you ensure it is impartial - How can they trust the contents?
Only Inspectors qualifying under a Certification Scheme approved by the Secretary of State will be able to prepare Home Condition Reports. The schemes will be responsible for monitoring and auditing Inspectors’ work. This will be robust to ensure that standards are maintained.
The Home Condition Report can be legally relied on by buyer, seller and lender. To ensure that consumers are protected, Inspectors will need to have suitable insurance. Certification Schemes will be required to check that the Home Inspector is insured for each Home Condition Report undertaken.