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Home Information Packs
The government is concerned that many house purchases fall through
because of the time it takes to get to completion. Where there is a
chain of buyers and sellers, just one person pulling out can ruin a
whole series of purchases, costing all those involved money, time and
patience.
To cut out timewasters and reduce the time it takes to get from the
offer stage to completion of sale, Home Information Packs will be compiled by a property seller and will
include information to help any buyer make an informed decision on a
property
The idea is that that property sellers will produce a Home
Information Pack (HIP) for potential buyers to see before they make an
offer.
Similar schemes already exist in other countries, notably Denmark and
Australia, and work well. The scheme was initially piloted in Bristol
back in 2000 and has been tried out in different regions across the
country.*
*Source www.channel4.com/money December 2005
Check back regularly for progress
on the Home Information Pack offering from About Mortgages or
Pre Register
to receive full information on our HIP offering when it is
available.
Where will I get a Home Information Pack from?
It is likely that Estate Agents will offer some kind of “buy now, pay
later” deal on Home Information Packs – they may even offer “free”
HIP s, and recoup the cost through increased fees. We
believe that this
means it is likely that Home Information Packs from Estate Agents will fail to
represent “best value”.
We expect there to be many 'all in
cost' offers that may include a 'free' Home Information Pack, solicitors
fees and Estate Agent Commission. While at first glance these schemes
may look attractive and convenient, we believe that people will be able
to get a better deal by shopping around for their HIP and solicitors
separately from their Estate Agent. This could also mean you are able to
negotiate the best deal with your Estate Agent for their services based
on a more traditional commission or fixed fee basis.
Should I get my HIP from the Estate
Agent?
Estate agents are likely to be the
first place people will think of to arrange their HIP. However, About Mortgages is
investigating options that will help us provide our customers with a
Home Information Pack. We believe that there are arguments for obtaining
your HIP through us rather than an Estate agent,
among these are:
- One anxiety about Estate Agent 'deals' for Home Information
Packs is that they will “suggest” that you have
to use them for mortgage / protection advice.
This is not true,
and you will remain free to choose your own mortgage.
We will not do this and would
suggest that people steer clear of anyone offering a HIP price that is conditional on using their mortgage services.
- We plan to offer Home Information
Pack s through a number
of different suppliers. This could mean that we will be able to offer
a HIP from dedicated specialists at a more competitive rate than you
may imagine. We also expect this service to be available online making
it straightforward and convenient.
- Obtaining your HIP from a
company independent of your Estate Agent could make it easier to
switch Estate Agent should you not be happy with the efforts being
made to sell your house. This is because the Home Information Pack will not be
branded with the Estate Agent's logo meaning it will not need to be
replaced should you change Estate Agent.
Check back regularly for progress
on the Home Information Pack offering from About Mortgages or
Pre Register
to receive full information on our HIP offering when it is
available.
When will Home Information Packs come in to force?
Home Information Packs will become a legal requirement on the 1st
June 2007.
What will a Home Information Pack contain?
Although legislation is still being finalized, it is expected that a Home
Information Pack will contain:
- Title documents for the property
- Replies to standard enquiries, such as whether you are aware of
any problems with the property (these are currently requested by the
buyer’s solicitor)
- Copies of any planning, listed building and building regulations,
consents and approvals
- Copies of warranties and guarantees if the property is newly built
- Any guarantees for work that has been carried out on the property
- A draft contract
- Local authority searches
- A house condition report based on a professional structural survey
of the property
- Seller’s questionnaire
And if the property if on a leasehold basis it is likely it will also
include
- Copy of the lease
- Most recent service charge accounts and receipts
- Buildings insurance policy details
- Any regulations made by the landlord or management company,
additional to those on the lease
- Contact and legal details of the landlord or management company
Check back regularly for progress
on the Home Information Pack offering from About Mortgages or
Pre Register
to receive full information on our HIP offering when it is
available.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You can choose how we are paid: pay a fee, usually 0.5% of the loan amount; or we can accept commission from the lender.
The FSA do not
regulate some forms of mortgage or Home Information Packs.
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