Latest Solicitors News - May 2009

Changes to HIPs

New legal requirements concerning property sales have now come into force.

Three key changes took effect from 6 April, 2009. They are:

• the Home Information Pack (HIP) for a property must be available from the first day that it is placed on the market. Previously, sellers were able to place their property on the market provided the HIP had been commissioned

• a new Property Information Questionnaire (PIQ) must be included in the HIP for homes placed on the market on or after 6 April 2009. The PIQ is designed to be completed by the seller, providing useful information about their property including details of utilities and services to the property, access arrangements, its Council Tax band and parking arrangements

• all searches in a HIP must be complete for properties placed on the market on or after 6 April 2009. Prior to this date, incomplete searches could be included provided omissions were covered by insurance.

HIPs were first introduced in September 2007 with the aim of making it easier for a buyer to make an informed decision on whether to buy a particular property, by providing in advance details that were traditionally provided during the conveyancing process. These include standard searches, an Energy Performance Certificate, which gives the property an energy efficiency rating and includes recommendations for improving this.

These new measures have some significant implications for property sellers, buyers, estate agents and other property professionals so seeking clarification from a solicitor experienced in property matters is a sensible move. Estate agents and search providers in particular need to be sure that their procedures will allow them to fully comply with the new rules.