Earlier this year the Government began to publicise a proposed change in the manner in which houses were to be bought and sold. Commencing in June 2007 it would be unlawful for anyone to sell their house unless a Home Information Pack (“HIP”) was produced first. This was to contain three elements, a Legal Pack comprising various searches and copy title documents, a Home Condition Report, roughly equating to a valuation report, but without ascribing any value to the property and an Energy Performance Certificate.

The stated aim for the production of a HIP was to provide as much information at the beginning of a transaction, as it was claimed that much time and money was being wasted with the current system, when potential purchasers pulled out of a transaction after an adverse survey report or some other matter was revealed.

The basic principle seemed sound, although it came at a cost to the Seller. The estimated cost of production of a HIP was put at anything between £700-£1,000. Also, it was unclear as to whether the Banks or Building Societies would be prepared to accept the Home Condition Report instead of commissioning their own mortgage valuation. Finally, it did not seem likely that the required number of Home Inspectors would have qualified by the time they were needed in June 2007.

As a result of the above problems, the Government announced in July 2006 that the Home Condition Report would now be a voluntary part of the HIP with more emphasis being placed on the Energy Performance Certificate and the Legal Searches and documentation.

At this time, it is still unclear how the Energy Performance Certificate is going to be produced and questions remain about the renewal of legal searches in the HIP, if the property is not sold for a period.

However, if you are considering putting your house up for sale, either now or in the future, it will be worthwhile contacting your Solicitor first, or at least at the same time as instructing an Estate Agent, so that the relevant parts of the Home Information Pack can be prepared as soon as possible to prevent any delay in the marketing of your property and to promote the smooth running of the transaction, once a Purchaser has been found.

At Jackaman Smith & Mulley we are closely monitoring the progress of the revised scheme so that we will be able to provide a service to our clients which meets the requirements of the latest legislation as and when it is finally introduced. Please do not hesitate to contact us on 01379 643555 and speak with a member of our Conveyancing Team if we can be of any further help with buying or selling your home.