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Wed 8th September, 2010
News
April 2009 HIPS Update |
6th April 2009 |
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HIPS UPDATE – 6TH APRIL 2009
From the 6th April 2009 all properties in England and Wales regardless of whether they are sold privately or through an estate agent will require a HIP in place before it is marketed.
Property Information Questionnaire (PIQ).
There is also a new component of the HIP which sellers will need to complete called a Property Information Questionnaire (PIQ). There are two forms of the PIQ, one for an existing property and the other for a newbuild
Specimens of the these forms can be found at the following links;
http://www.lawsociety.org.uk/documents/downloads/dynamic/ta00_formspecimen.pdf
http://www.lawsociety.org.uk/documents/downloads/dynamic/ta0_formspecimen.pdf
The property information questionnaire has been designed in theory to be easily completed by the seller, without professional help. However, we will have to see how this is operated in practice. Its aim is to provide buyers with basic, useful information about the property and will include such matters as flood risk (it is advised within the form that if the buyer does not have any knowledge of flooding at the property that the buyer checks the Environment Agencies website for an indication of flood risk within the area), access, service providers, boundaries and parking arrangements.
There is much controversy over this form and whether it is in fact a necessity some refer to it as a “pointless information questionnaire”. See link for a recent article in the Law Gazette;-
http://www.lawgazette.co.uk/news/conveyancing-solicitors-warned-liability-incomplete-searches-hips
New Build Properties
For New Build properties a Sustainability Certificate, or a Nil Rated Certificate, will be to show how sustainable a property and if documents, such as the EPC or searches, are not available at the first point of marketing, then from the 6th April 2009, the HIP can still be classed as compliant provided :-
• Energy Performance Certificate has been requested and there has been an undertaking to pay for it, and 14 days have elapsed since the EPC was requested
• Searches are added to the HIP within 28 days of it being issued.
Searches
Where a personal local search has been included within a HIP, this will now need to contain answers to all CON29R questions and personal search companies are no longer allowed to use search insurance to cover missing answers.
Documents required in a Home Information Pack from the 6th April 2009
The HIP Regulations state that the HIP must be compliant with their provisions and must contain the ‘required’ documents and information at the first point of marketing.
Please see below for the required documents to be contained within a HIP. Points 1-4 should be in this order the other documents may appear in any order.
1. Index
2. Property Information Questionnaire
3. Energy Performance Certificate, or, if the property is not complete, then inclusion of a predicted energy assessment
4. For new build properties - a Sustainability Certificate or a Nil Rated Certificate
5. Sale Statement
6. Evidence of Legal Title to a property, (i.e. official copies of registers of title from the Land Registry or an Index Map Search and an Epitome of Title).
7. Local Search
8. Drainage Search
9. Lease
10. Draft Lease if a new build
11. Information about the Leasehold (including budgeted service charge statement)
28 Day Rule
A HIP must ALWAYS contain the Index, Sale Statement, official copies of the registers and filed plan for registered land and an Index Map search for unregistered land and the Property Information Questionnaire.
However, the EPC, Lease, Leasehold Information, Local & Drainage searches can be included at a later date provided they are included within 28 days starting with the first point of marketing. However, a proof of request will must be included in the HIP in their absence as evidence that they have been requested. Please refer to the Regulation 33 of the Home Information Pack (Amendment) Regulations 2008.
Proof of Request
If a proof of request is included within the HIP at the first point of marketing. The Index will contain details of the missing document or information and why it is missing, the efforts being made to obtain it and when it is expected to be available plus evidence to whom and when the request was made.
A possible defence for estate agents/seller for a non compliant HIP could possibly be that they reasonably believed that the missing document or information will be available by the 28th day after the first point of marketing and they have made continuing efforts to obtain it;
The compiling of a HIP can be complicated and as one of the main components is confirmation that the Seller legally owns the property, a Solicitor is ideally placed to obtain this information. Furthermore Solicitors have years of experience in obtaining the searches that are required.
If you require a HIP please contact Lawcomm Solicitors on 01489 864 100 for a competitive quote to have your HIP compiled by a Solicitor.
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