Under Section 5 of the Housing Act of 2004, the Home Information Package ( HIP , in lower case: hip ), sometimes referred to as < b> Package Seller , must be reserved before property in England and Wales can be sold on the open market with an empty hold. There is a separate law for Scotland that requires anyone who sells a property to provide a House Report. The package is a set of documents about the property: Energy Performance Certificates, local authority searches, title documents, warranties, etc. The introduction of HIPs is subject to delays and reduced requirements, but they became mandatory for homes with four or more bedrooms on 1 August 2007 and extended into a three bedroom property from 10 September 2007.
The Government has suggested that the Home Information Package will lead to a reduction in the number of failed sales as their justification for introducing the scheme, reducing gazumping and gazundering. They were introduced despite strong opposition from some factions in the building industry (although very much support them) and estate agents, as well as some rented surveyors. There are claims that the package contributed to the 2007-09 housing crisis by blocking vendors from marketing their homes due to the additional costs involved in the survey.
Requirements for Home Information Packages for property sales are suspended from 21 May 2010 by the incoming government. The exception is that Energy Performance Certificates are still required. The Localism Act 2011 formally revoked the Home Information Pack legislation on January 15, 2012.
Video Home Information Pack
Histori
When the idea of ​​the Home Information Pack is evolving over time, so is the reason for its introduction. Proposals for addressing gazumping issues were first made in the 1997 Labor Party manifesto. Research after the election revealed that about 28% of sales dropped before contract exchanges, with gazumping occurring in less than 2% of sales. The emphasis then shifts to the benefits of increased speed, transparency, and consumer friendliness. This idea is based on a similar practice used in Denmark.
The Home Information Package was announced in the Queen's Speech in November 2003.
In March 2006, the government gave the green light to some certification schemes. At this stage a number of organizations have expressed interest in carrying out the certification scheme and more than 3,000 people have undergone training for qualifications of home inspectors. In June 2006 draft regulations were created by arranging the detailed contents of the Home Information Package, the rules governing the availability of packages, the exclusion of package assignments and arrangements for law enforcement.
In September 2006, the government approved the first Certification Scheme to oversee the work of the Home Inspector. The scheme is created and run by industry; The government sets the standard that the scheme operates. In September, the Contract of House Conditions Report was approved. A full operational list is scheduled to follow as soon as possible afterwards.
In June 2007, the government announced that it would fund or subsidize 5,000 HIPs for  £ 100 before the official launch date of August 1, 2007.
Initially HIP will be requested starting June 1, 2007. However, just ten days before that date, Community Secretary Ruth Kelly announced that they would be phased out from August 2007, and initially only for larger properties. Between August 1 and September 10 only homes are marketed with four or more bedrooms that are legally required to have HIP. It expanded to include homes with three or more rooms from 10 September.
On November 22, 2007 Housing Minister Yvette Cooper announced that HIP would be launched to include one- and two-bedroom properties on December 14 complete a gradual introduction of the Home Information Packages to residential homes that are marketed for sale in England and Wales.
First Day Marketing (FDM) is a mandatory requirement to provide all necessary documents in HIP on the first day of a home marketed to the public. Initially, the date was set for the requirements to commence on December 31, 2007 but was postponed until June 1, 2008 to allow for the transition period. A home may be marketed during that time, giving commitments to pay HIP - including EPC - made and necessary documents having reasonable expectations to be available within 28 days. However, on May 8, 2008, the Minister of Housing, announced a further delay for marketing the first day until December 31, 2008.
Since April 6, 2009, every property needs a Home Information Package before it can be marketed. Full HIP is now no longer needed, only Energy Performance Certificates.
Maps Home Information Pack
Contents
The package should contain the following, and should be no more than three months when the property is first marketed:
- Index
- Energy Performance Certificates
- Sales Statement
- Property Information Questionnaire
- Document title for property
- Local Authority and waterway search
If the property is an ordinary piece of land, then the package should also include the following:
- A copy of the lease
- Create an insurance policy
- Contact details for owner or management and any legal details
- Applicable rules
- The latest service charge and charges
For transitional period sellers can market their homes without search or rental documents as long as the package contains evidence that they have been commissioned and will be entered as soon as possible but certainly within 28 days. But the Government announced in December 2008 that since April 6, 2009, this concession will be withdrawn, and the HIPS package should be really available on the day when the property was first offered for sale.
This package may also contain some or all of these official documents:
- Report on Home Conditions
- A two-seller questionnaire form called the Home Use Form and the Home Content Form
- Legal summary
- Other searches like mining search
Report on Home Conditions
It was originally planned that the Home Information Package would also include a Home Condition Report, detailing the general condition of the property in plain English. The goal is that these reports will make the buyer aware of the problem initially, thus avoiding later shocks in the process which may result in a good delay while the price is renegotiated, or sales cancellation. Their compulsory engagement is then postponed, with governments seeking to avoid risks to consumers from delays and potential for late implementation schedules.
When finally introduced, the Home Conditions Report will be conducted by qualified Home Inspectors, and in particular the industry fears that both certification schemes for inspectors and databases to withhold their reports will be ready on time.
The introduction of mandatory home-status report remains on the table, but the Government wants more time to assess consumer demand and further test results. They should also look at the cost, savings from avoiding waste and duplication, consumer attitudes toward Package, transaction failure and transaction time, and the willingness of people to sell with HIP in place.
Energy Performance Certificates
Similar to the EU tool efficiency rating, energy performance ratings on Energy Performance Certificates provide potential buyers with an assessment of the energy consumption of the property, along with a list of practical steps that can be taken to cut fuel bills and carbon emissions.
The Energy Performance Certificate (EPC) in the UK must be completed by a Domestic Energy Assessment (DEA) that meets government requirements. DEA offers advice on how to improve energy performance from residence that can save money. However, in practice, such documents provide only small, valuable general advice to potential buyers. They often show errors because the survey is superficial and unobtrusive. They ignore older buildings and are registered where planning permission is required for structural changes to the property, such as installing a double glass window for example.
The Energy Saving Trust hopes that by following the proposal in a certificate of energy performance, the average homeowner can save £ 300 per year on fuel bills. The government also hopes that the information could be used to support the growth of green mortgages and other incentives.
This section of the Home Information Pack is required to meet the European Energy Performance requirements of the Building Guide.
However, the EPC has met with fierce opposition by the Royal Institute of Chartered Surveyors, who in May 2007 initiated a court action against the Government to force a Review of its implementation, and demanded it to review the EPC's lifetime in HIP. This move prompted internal protests within the RICS after a number of members petitioned the organization to withdraw its legal action on the basis that it failed to consult with members in advance.
Cost
Initially the cost of the Home Information Package, including the House Condition Report, is estimated to be around Ã, Â £ 600 by the Government. This is to include the pending Home Conditions report cost, which is expected by the Department for Communities and Local Government for fees between Ã, Â £ 250 and Ã, Â £ 1000. The industry then expects the Home Information Pack (excluding HCR) at a cost between Ã, £ 300 - Ã, Â £ 600 for most properties in England and Wales. Naturally, for larger or more complex properties, the cost could be much higher. Some property agents offer HIP for free.
However, the Government indicates that most of the items in the package should already be provided during the sales process, so these are not all additional costs.
Enforcement
Failure to provide a Home Information Package, or supply an incomplete package carries a fine of £ 200 per day for the property to be sold.
Enforcement must be done by the Department of Trade Standards of local authorities; but they claim that this is inappropriate because they usually set up the business, and that would cost too much to uphold through civil courts.
On July 31, 2007, the Fair Trade Office notified property agents of their obligations. Since August 1, 2007, the failure of property agents in England and Wales to comply with the new Home Information Pack rules may result in a ban from the work of a real estate agent.
Reception
On 15 May 2007, the Royal Institution of Chartered Surveyors (RICS) initiated a Judicial Review process against the Department for Community and Local Government for what they regarded as a department's failure to conduct full consultations on HIP.
Despite objections to the HIP scheme, RICS has provided a Home Inspection and Internal Energy Assessment course, as well as courseware manuals for Home Inspector & amp; Internal Energy Assessor.
There are concerns that the up-front costs involved can make some people not put their homes on the market, which in turn may put pressure on the housing market.
The property industry is largely opposed to this change. but the government says the new system will make all homeowners better.
The National Association of Estate Agents holds to the view that the law is unnecessary, excluding the important reasons why sales and purchase transactions fail, and that the costs are too high.
Britain's largest independent real estate agency, Spicerhaart, initially called for a boycott of the home information package scheme, although later revised this position became one of full support.
Instead, the introduction of HIP was initially supported by Which one? , who believe they can reduce the number of failed transactions resulting from problems that can be identified in the early stages. The organization has withdrawn its support following the Government's decision to delay the introduction of the Home Conditions Report.
The Conservatives, when in the Opposition, declared that they planned to abrogate the law, calling it 'red ribbons expensive and lacking'. Indeed, the Conservative opposition to the HIPs was instrumental in the defeat at the House of Lords, where colleagues voted with 186-160 in favor of leaving the pack. This leads them in conflict with the Home Information Package Provider Association.
Under Part 3 of the Housing (Scotland) Act 2006, a person responsible for marketing a home must provide a House Report for each potential buyer. To do this, you need to assign a Chartered Surveyor (or an approved provider) to implement Single Survey and Energy Report. You must also complete the Property Questionnaire.
On May 12, 2010, the conservative coalition government - the incoming Liberal Democrats announced the intention to scrap Home Information Packs. The terms of the property seller to provide the HIP were discontinued on May 20.
See also
- Deliver information
- The UK residential property market
- Internal energy appraisal
References
External links
- Home Information Pack - The government website
- Home Information Packages (Archived Webpages) - Community and Local Government Department
- Home Information Package Regulation 2006 - Public Sector Information Office
Source of the article : Wikipedia
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