With effect from June 2007 it will be a legal requirement for people selling their homes to have a Home Information Pack (HIP) prepared before they start marketing their property. The full components of this pack are still to be finalised however it is anticipated that it will comprise the following;

The required documents are:

• An index (i.e. a list of the contents of the Pack)
• A sale statement (summarising terms of sale)
• Evidence of title
• Standard searches (i.e. local authority enquiries and a drainage and water search)
• An Energy Performance Certificate
• Where appropriate, commonhold information (including a copy of the commonhold community statement)
• Where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance)
• Where appropriate, a New Homes Warranty
• Where appropriate, a report on a home that is not physically complete
  

The authorised documents include:

• A Home Condition Report
• Guarantees and warranties
• Other searches.

There are a few exemptions to this new law these being :

• New Builds
• Commercial Premises
• Right to Buy
• Properties not being marketed

The legislation was introduced primarily to speed up the house buying process and to decrease the number of sales collapsing by providing potential buyers with all the information they need before making an offer. Financially this will assist First Time Buyers who will not have to pay for a HIP as they are not selling a property.

For existing home owners, whilst they will have to provide a HIP for the property they are selling, they will not have the expense of paying for searches/surveys on their potential purchase.

It is hoped that the introduction of HIPs will bring an end to the numerous chains that collapse due to potential buyers pulling out on receipt of an unfavourable survey as they will have sight of the Home Condition Report in the HIP provided by the seller before they make their offer.