Thinking of selling your home ? Well before you do consider the new law which introduced home seller information pack, which is to come into affect from 1st of June 2007. This requires homeowners in England and Wales to supply a Home Information Pack (HIP) also known as a Sellers Pack to prospective buyers.
So far there is mixed feelings regarding the usefulness of these packs. Those in favour of the packs say they will make the buying and selling process quicker and cheaper, those against claim they will actually push up the cost for sellers and trigger a house price slump.
More than a quarter of house sales fall through after an offer has been accepted and the legal formalities begin, costing potential buyers hundreds of pounds. It is estimated that £1 million is wasted per day on failed transactions.
Under the new system potential buyers will be able to see a report on the condition of the property before making an offer.
The pack must be less than three months old when the property goes on the market and must include the following: A sale statement, evidence of titles from the Land Registry, standard searches, warranties and guarantees for any work carried out, home condition report including energy efficiency audit, NHBC guarantee certificate and copy of the lease for leasehold properties.
Under the current system most of the information in the pack is collated by the buyers solicitor with the exception of the home condition report which has to carried out by a certified home inspector and costs approx £300 plus VAT. Estate agents all over the country are preparing for the new system and some are even offering the Home Information Pack as part of the estate agency services.
