Home Information Packs

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Home Information Packs

• Colin Edmonds
• colinedmonds_at_howlettclarke.co.uk
• DD Tel. [phone]
• www.howlettclarke.co.uk

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Introduction

• Colin Edmonds
• Partner with Howlett Clarke
• and Head of Residential Conveyancing
• David Thompson
• Director of Home Inspection Services (Sussex) Ltd
  HCR and Energy Efficiency certificates
• Peter Moreton
• Property Search Southern

2 HIP
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Home Information Packs

• Why ?
• Government manifesto 1997
• to make it easier for people buying and selling
  homes
• To make the home buying process more transparent,
  certain and less stressful
• To reduce the current level of 27 of UK carbon
  emissions that come from homes
• When ?
• England and Wales from 1 June 2007

3 WHICH PROPERTIES
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Which Properties ?

• All residential sales
• except
• Those on the market before 1 June 2007
• Where there is no marketing
• Properties not sold with full vacant possession
• Mixed commercial/residential properties

4 PRE 1 JUNE
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Pre 1 June 2007 marketing

• Properties already marketed before 1 June can
  continue to be marketed until
• 31 December 2007 without a HIP
• the drop dead date

5 CONTENT OF HIP
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Content of Home Information Packs

• The Home Information Pack Regulations 2007 set
  out provisions on the compulsory (required)
• Optional (authorised) content of the Pack

6 REQUIRED DOCUMENTS
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Required Documents

• Home Information Pack index
• if a document is missing the Index must say so,
  give the reason it is missing and indicate what
  steps are being taken to obtain it. The index
  must be revised as documents are added
• Energy Performance Certificate
• Sale Statement to include
• the name of the seller
• the address of the property
• its tenure
• whether the property is registered or
  unregistered
• Evidence of Title
• Local and drainage and water searches

7 ADDITIONAL INFO FOR LEASEHOLD SALES
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Additional information for leasehold sales

• to include
• a copy of the lease
• any regulations or rules that apply to the
  property that arent mentioned in the lease and
  any proposed amendments to same
• statements or summaries of service charges
  covering the previous 36 months

8 AUTHORISED DOCUMENTS
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Authorised Documents

• The authorised documents include -
• Home Condition Report
• Home use/contents form
• Legal summary
• Other searches

9 NOT INCLUDED IN HIP
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What is not included in a HIP ?

• Sale Contract
• Further searches e.g. environmental commons
  registration chancel repair
• It is almost certain that a Buyers solicitor
  will raise additional enquiries and apply for
  further searches when the contract papers are
  received

10 END RESULT
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End Result

• The HIP may well prevent time wasters going to
  market.
• It may allow a Buyer to make a more informed
  decision when deciding whether or not to make an
  offer
• BUT
• Will the conveyancing process really alter or be
  speeded up ?

11 DO YOU NEED A HIP TO MARKET
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Do you need a HIP to place a Property on the
Market ?

• Yes
• And the HIP must include the Energy Performance
  Certificate (EPC)
• If the EPC has not been obtained 14 days after it
  has been commissioned the Property may be
  marketed BUT the HIP must include proof it has
  been commissioned
• The EPC or the Energy and Environmental graphs
  must be attached to the property particulars
  provided to all prospective purchasers
• Marketing can continue whilst some other
  documents may be missing
• Searches
• Leasehold documents
• Title to unregistered land

12 BUT
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BUT

• The application must have been made
• They must be expected within 28 days
• Proof is included in the pack

13 HOW LONG
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How long will the Pack be valid for

• As long as the property is marketed for sale
• The regulations do allow for where a Property has
  been taken off the market for a period eg when
  under offer or a change in Agents
• The only time sensitive aspect of the Pack is the
  local search (valid for six months) although the
  regulations do not appear to make any provision
  for the search to be renewed

14 BREACH OF REGULATIONS
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Breach of Regulations

• The Agent marketing the Property is responsible
  if the HIP is defective
• The provider of any specific document within the
  HIP is responsible for the accuracy of the
  document
• Enforcement by local authority Trading Standard
  Officers
• warning notice
• 200.00 fine (and notification to the Office of
  Fair Trading)
• banning order
• NB from 1 June 2007 all Estate Agents will be
  required to join the Ombudsman scheme which
  covers complaints about conduct with regard to
  HIPs with compensation of up to 25,000.00

15 FIRST STEPS
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The First Stepsto produce a HIP

• Referral from the Agent
• Contact with the Seller
• acceptance of Terms of Business
• money laundering
• funds to cover searches energy assessors fee
  obtaining Land Registry documents
• We will provide a check list of what we need to
  make a start

16 H C SOLUTIONS
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The Howlett Clarke One Stop Solution

• Dedicated HIP assembly department
• All conveyancing work under the direct
  supervision of an experienced Solicitor
• No need to duplicate the money laundering
  requirements
• Access to Energy Inspectors and to Home
  Inspectors
• Seller/Agent to be provided with 2 hard copy
  bound HIPs and 3 CD roms Estate Agent branding
• Our assembly fee will be waived if instructed on
  the sale
• Payment can be made by credit card

17 KEY SOLUTIONS
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Key to Success

• Good Communication
• An understanding of the issues
• Local relationships and working in harness with
  each other
• Maintaining independence and with it
  professionalism and integrity

18 COMING SOON
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Coming Soon

• New bespoke case management system
• Password access to our files to check progress on
  a particular matter

18 SUMMARY
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SUMMARY

• HOWLETTCLARKESOLICITORS
• HIPS MADE SIMPLE
• Our Clients Come First
• hips_at_howlettclarke.co.uk

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Home Inspection Services (Sussex)LtdDavid
Thompsondirectorhiss.sussex_at_ntlworld.com
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Energy Performance Certificates (EPC) and
Home Condition Report (HCR)
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WHAT IS AN EPC?

• Certificate of the energy performance of a
  particular property
• Gives an energy rating that can be used as a
  comparator
• Gives an indication of fuel costs CO2 emissions
• Identifies recommendations

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• Which properties are included?

• All construction types and style
• Non-standard
• more than 4 floors
• More than one extension
• Grade 1 listed building
• WHAT IS EXCLUDED?....

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Property Types Excluded

• Residential properties sold with tenants in
  possession
• Multi residential
• sheltered housing, nursing homes, hotels etc
• Houses in multiple occupation (HIMOs)
• typically a large Victorian house
  converted to bed-sits
• EPC/HCR PROCESS.

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EPC or HCR- The Process
EPC/HCR instruction received
Accept/decline
HIP instructed
Investigate?
Input into software
Carry out inspection
EPC/HCR is produced
Arrange visit
Upload to HIP/Cert Scheme/Central Register
Inform client
Deal with queries
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RENTAL PROPERTIES

• No EPC required until October 2008.
• When first new tenant moves into property after
  Oct 2008, EPC required
• EPC will last for the rented property for 10
  years

EPC EXAMPLE.
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Home Condition ReportWhat is it?

• An objective report on the condition of a
  property.
• Produced by a Licensed Home Inspector using a
  standard format to be easy to read and
  understand.
• Aims to highlight building defects that are
  either serious or urgent.
• Aims to enable home owner and ultimate buyer to
  be aware of defects in making decisions.

4 Condition Ratings
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4 Condition Ratings

• Not inspected
• Condition Rating 1
• no repair needed- normal maintenance
  required
• Condition Rating 2
• repair or replacements needed but not
  serious or urgent
• Condition Rating 3
• defect requires repair/ replacement and is
  either serious and/or urgent

HCR EXAMPLE
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