Your HIP questions answered

How long will it take to put a property on the market?

Until 1st January 2008, a property can be marketed as soon as a HIP has been ordered (proof of this is required).After that date the property can be offered for sale as soon as the EPC and land registry documents are ready. In most cases producing these documents should take 7 days or less. The rest of the documents (searches and leasehold documents) have to be assembled within 28 days of marketing the property.

What happens if a property is taken off the market?

A HIP is valid for one year from the date that the property is first marketed. A property can be taken off the market and put it back on again within a year using the same HIP. However, the vendor will need to consider the terms on which the HIP was provided, and any contract with the estate agent or other body that has financed the HIP.

Can a HIP be used by a different estate agent than the one who ordered it?

This depends upon who owns the HIP. If a vendor has paid for the HIP, they can take the HIP with them to a new agent. If however the agent has paid, then in most cases the vendor will have to pay for the HIP before it can be transferred. We are able to transfer a completed HIP on our system to a new estate agent provided all required payments and contractual obligations have been met.

When does a HIP need to be updated?

There is no obligation on the vendor or estate agent to renew anything in the HIP. If something significant happens whilst the property is on the market, then you may choose to do update it, but it is the buyer’s solicitor’s responsibility to check if any documents need renewing.

How long are searches valid for?

The Council of Mortgage Lenders recommends 6 months as the maximum length of time that searches can be relied upon form when they were carried out. Richards Gary will be offering both search refresher packages and search validity extension cover to buyer’s conveyancers in the next few months.

What happens if something goes wrong?

Although the HIP is a new document, a whole range of measures and safeguards have been put in place to help you if you have any questions or problems – you are well protected!

• Details of all the organisations and individuals who provided information for your pack will be included in the completed HIP, so you will know where to address any questions.
• All reputable pack providers must subscribe to the Property Codes Compliance Board – see www.propertycodes.org.uk. This body sets and enforces standards with regard to insurance cover, complaints and redress procedures and overall quality levels. All PCCB members are protected by a minimum of £5million professional indemnity cover for each and every HIP. Richards Gray carries £8m PI cover on every HIP or search it produces, as well as a £2m Information Accuracy Indemnity Policy
• All estate agents will have to belong to a compulsory approved redress scheme (many already belong to the Ombudsman for Estate Agents’ scheme, which covers complaints and compensation with regard to Home Information Packs should the relevant rules be deemed to have been breached. Visit www.oea.co.uk for more details.

www.homeinformationpacks.gov.uk contains much more detailed information if you have any other questions.