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There are a few key legal points of which you need to be aware.
- From 1st August mandatory HIPs are required for properties of 4 bedrooms or more. The government has said this will be extended to smaller properties as soon as sufficient energy inspectors are available.
- Until the end of 2007 marketing a property that requires a HIP can begin as soon as the HIP has been ordered, but the “responsible person” must actually proceed with production of the HIP – ordering and then “delaying or canceling” is not allowed.
- For any property that requires a HIP, contracts cannot be exchanged on the property until a HIP and an EPC has been completed.
- From January 2008, marketing will not be able to start until certain elements of the HIP are available to potential buyers – see “What is in a HIP” section.
- THERE ARE PENALTIES FOR NOT PRODUCING A HIP - After 1st August, if a property requires a HIP, there is the potential for a £200 fine for every day that a property is marketed without a HIP. Repeat offenders can be disbarred from trading as an Estate Agent. This will be enforced by Trading Standards officers
Please contact our HIP customer service team if you require further advice, or visit www.homeinformationpacks.gov.uk where all the detailed regulations can be accessed. This site also has an extensive Frequently Asked Questions section
The Responsible Person
The Responsible Person is defined by the Housing Act 2004, which is the basis of the HIP legislation. Producing the Home Information Pack is the responsibility of the person or company responsible for marketing the property – so this will usually be an estate agent.
Remember however that “marketing” in this case legally means promoting a property to more than one person. So as well as an estate agents advertising, that would also include putting the details in the local post office, advertising in a newspaper or promoting the sale of a home on the internet, even if the person doing so is not an estate agent.
The responsible person can of course contract the production of the HIP to a third party such as Richards Gray, but they still remain “responsible”. This is a key reason why it is important to use a well established company to prepare your HIP, which subscribes to the Property Codes Compliance Board and has the appropriate level of Insurance coverage in place. Richards Gray ticks all these boxes!
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