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MAKING SENSE OF HOME INFORMATION PACKS
26th April 2007

From 1 June 2007 residential properties will require a Home Information Pack before they can be marketed for sale. This measure by the government will be one of the biggest changes to the home buying process for years however, with the date of introduction only a few weeks away, surprisingly many people are unaware as to what a HIP is.

The pack will bring together key information about a property and will be available to buyers up front to enable them to make informed decisions as to whether or not to buy a property. The intention is that this will save both time and money for both parties, improve the chances of a sale successfully going through to completion without too many glitches and will reduce the chances of a chain collapsing.

As a buyer how do I get a pack?

If you are interested in a property ask the estate agent for a copy of the pack (or if it is being marketed without an agent ask the seller directly). This should be provided free of charge, although a reasonable charge may be made for copying and postage.

What do I do with it?

When you get it, read it carefully, or ask your solicitor to look at it for you: it will tell you about the property’s energy efficiency, any issues that have come up in the local searches, and any conditions relating to the property which you should be aware of.

If you make an offer which is accepted, make sure you give a copy of the pack to your solicitor – this should save you time and money in the rest of the process.

What does the pack consist of?

Your Pack will contain:
• An Energy Performance Certificate
• An index of contents
• A sale statement (summarising terms of sale)
• Evidence of title
• Local and drainage searches
• Leasehold documents (where appropriate)

However, where there are delays, some packs may not include some of the following documents when marketing starts (although they should be added as soon as they do become available):
• Searches
• Leasehold information.

The pack can also include other information that would be of interest to buyers – for example, a Home Condition Report, other searches, guarantees and warranties, however, these items are optional and may not be contained in the pack. The regulations prohibit the inclusion of any information which is not listed as ‘required’ (compulsory) or ‘authorised’ (optional) and this includes any marketing or advertising material.

The pack might also contain a legal summary, and answers to standard enquiries made of sellers.

What does the Energy Performance Certificate say?
The energy performance certificate will give the property an energy efficiency rating depending on what measures have been undertaken to improve energy efficiency, i.e. does it have double glazing, loft insulation, etc. It will have useful advice on any improvements that can be made to cut fuel bills and boost the energy efficiency of the property. This is the element of the HIP that has been introduced by the government to bring us in line with the Kyoto agreement.

For purchasers having the information that the HIP provides up front before any offer is made may prove a real benefit and will help minimise any unexpected costs at a later stage. However, the information within them may appear mind-boggling to many purchasers and issues may not appear obvious to the untrained eye.

It may be useful to ask a professional adviser such as a solicitor to have a look through the HIP to help interpret the information it contains and pre-warn you of any problems they foresee.

As one of the leading local conveyancing firms, Coles-Miller Solicitors will be happy to review any home information packs on properties you are looking to purchase, offering guidance on the meaning of the information and identifying any issues arising before you make an offer or commence any conveyancing procedures.

For many people buying a house is the most significant purchase they will ever make so it pays to take advice early on. If you do decide to proceed and instruct Coles Miller to undertake the conveyancing they will then waive the fixed fee for this review and charge you only for the conveyancing work.

For more information, please contact the Coles Miller conveyancing team.

For further press information please contact Joanna Mapstone on 01202 338959.