IMPORTANT NEWS YOU SHOULD KNOW ABOUT SELLING YOUR HOME

Since 14th December 2007 it has been a legal requirement for you to compile a Home Information Pack (HIP) relating to your property before you can start marketing it for sale to the general public.

What does this mean to you if I am thinking of putting my house on the market?

As a seller you will be required to make available a HIP to potential buyers. The HIP provides useful information about the property so that a potential buyer can feel confident about his/her purchase.

What are the benefits to me as a seller or buyer?

The HIP provides up to date and reliable information about your property so that a
potential buyer can feel confident about making an offer to purchase it. The HIP will contain information to help speed up the conveyancing process. It will also reduce the likelihood of a sale falling through due to unexpected problems coming to light at a late stage.

What information does the HIP contain?

A HIP must include the following documents:-

1. An index which will list the contents of the HIP.

2. An Energy Performance Certificate (EPC) relating to your property which will need to be carried out by a Domestic Energy Assessor (DEA).

3. A sale statement which will give details of your property including your full names and address as the owners of the property and advise whether your property is freehold or leasehold.

4. Up-to-date copies of the title deeds of your property obtained from HM Land Registry.

5. Local Authority and Drainage searches relating to your property.

How do I get a HIP?

You can obtain a HIP from Spratt Endicott Solicitors

We will compile all of the items 1-5 listed above, with the exception of the EPC. We have the technology to ensure that the items needing collation, for the purposes of the HIP, will be
available within an expected time scale of five working days.

We have vetted, and subsequently made arrangements with, locally based DEAs who we are confident will be able to produce the EPCs within the same timescale.

From 1st January 2009 you will not be able to start marketing your property to the general
public until a HIP is compiled, so the speed at which it will be has been our primary concern on your behalf. Until that date you can start marketing your house as soon as you have instructed us to compile a HIP.

How much will they cost?

a. The copy of the legal title of your property will cost £6.00.

b. The Local Authority and Drainage searches will cost approximately £120.00.

c. Spratt Endicott will charge £100.00 plus VAT (£117.50) for producing the HIP.

d. A DEA will charge approximately £95.00 plus VAT (£111.63) for
producing the EPC to be included in the HIP but this figure may vary depending on the size of the property you are selling.

From the above you will see that the cost of producing a typical HIP will be in the region of £355.00 inclusive of VAT. This figure will increase by £20 if you are selling a leasehold
property, this being the cost of obtaining a copy of the lease of your property that must be
included in the HIP.

How will I pay for the HIP?

You can pay for the HIP completely at the outset if you so wish - Option 1.

However Spratt Endicott and our chosen DEAs are delighted to say that we can offer you the following further two options:-

Option 2. Paying for the items listed at (a) and (b) above, (amounting to £135.00) up front and paying Spratt Endicott's and the DEA's costs only on the legal completion of your sale from the sale proceeds of your property.

Option 3. Paying the whole of the cost of producing the HIP on the legal completion of your sale, again from the sale proceeds of your sale, but with additional legal costs of £25.00 plus VAT being payable.

You will be asked which option you prefer at the time you give instructions for the HIP to be compiled.*

You should be aware in respect of Options 2 and 3 that if you do not complete the sale of your property within six months from the date you give Spratt Endicott instructions to compile a HIP on your behalf the balance outstanding would then become payable by you.

*Please note that Option 3 is only available if you have instructed Spratt Endicott to deal with the conveyancing in respect of your property

Instruct us to prepare your Home Information Pack »

For further information contact our Property Logic Department.
Tel: 01295 204100
Email: property-logic@se-law.co.uk